Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation simple for numerous businesses, 60 % of organizations in the US are unaware of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and easy, the following are our main 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, therefore getting rid of guesswork. With more transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities that will effect your department with value add actions.
Reinforce internal controls
A manual A/P method is susceptible to fraudulent activity. You multiply 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The outdated manual method suffers from lack of awareness, wherein can result in failing to identify a part of liabilities. This may understate expenses as well as overstate income, which could result in accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation provides an entire audit trail of every part of the method, and enables management to swiftly here solve possible problems.
Your vendors would like a more efficient payment method. Easier payments result in discount rates and cost savings for you. If you pay your clients by means of virtual card, which is an individual issued credit card for a one-time use, you will earn monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are expensive and use up many resources to manually clear up. With payment automation, you can see where, when and why mistakes happened. Contrary to the manual process, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn check here you additional revenue, lessen the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ demands, and improve the total quality of your A/P processes.