Top Reasons to Automate Accounts Payable
While modern technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 percent of companies in the USA are unaware of the numerous benefits of A/P automation. Leveraging software programs to implement the process in manner that is seamless and easy, the following are our main five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, accordingly removing guess work. With more transparency from A/P automation, awareness into the system allows your A/P department to give attention to activities and priorities that will effect your department with value add actions.
Improve internal controls
A manual A/P method is subject to fraud. You increase the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The outdated manual method suffers from lack of awareness, through which can result in failing to realize a part of liabilities. This can understate operating expenses as well as overstate income, that may cause accounting and reporting abnormalities and ultimately fraud. A/P automation produces a whole audit trail of every part of the process, and enables management to swiftly solve possible issues.
Your vendors prefer a more effective payment process. More efficient payments result in discount rates and cost savings for you. If you pay your clients by means of virtual card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and needless costs with an automated A/P process. A/P errors can get more info be very expensive and take many resources to manually handle. With payment automation, you will see where, when and why faults transpired. Unlike the manual process, with automation click here you’ll have the ability to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraudulent activity, provide your operations increased transparency, meet the customers’ demands, and boost the overall quality of your A/P processes.