Top Reasons to Automate Accounts Payable
While modern technology makes Accounts Payable payment automation a standard for a number of companies, 60 percent of organizations in the US do not know of the countless benefits of A/P automation. Leveraging software to utilize the method in manner that is seamless and convenient, here are our main five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, consequently getting rid of guess work. With greater transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities which will impact your department with value added actions.
Improve internal controls
A manual A/P method is susceptible to fraudulent activity. You add to the challenges of human error, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The obsolete manual method suffers from lack of visibility, in which can result in failing to recognize a part of liabilities. This could understate expenses thereby overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each part of the method, and permits management to quickly handle possible difficulties.
Your suppliers prefer a more effective more info payment process. More efficient payments result in special click here offers and savings for you. Whenever you pay your clients with virtual credit 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, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P problems are expensive and use up many resources to manually remedy. With payment automation, you see where, when and why errors happened. In contrast to the manual procedure, with automation you’ll be in a position to methodically address and reduce issues to boost quality.
A/P payment automation can save you cash, earn you additional cash, lessen the risks of fraudulent activity, bring your operations increased transparency, fulfill your customers’ demands, and improve the total quality of your A/P processes.