Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for numerous organizations, 60 % of businesses in the United States are not aware of the many advantages of A/P automation. Leveraging software applications to implement the method in manner that is seamless and easy, listed here are our best five reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, accordingly eliminating guess work. With greater transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that will impact your department with value add actions.
Enhance central controls
A manual A/P method is susceptible to fraudulent activity. You multiply the risks of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual practice suffers from lack of awareness, by more info which can result in failing to identify a segment of risks. This can understate operating expenses and therefore overstate income, that may lead to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation produces a complete audit trail of each and every part of the method, and allows management to quickly handle potential difficulties.
Your vendors would like a more beneficial payment method. Easier payments result in deals and savings for you. When you pay your clients by way of virtual card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P errors may be very costly and use up many resources to manually handle. With payment automation, you see where, when and why problems occurred. In contrast to the manual procedure, with automation you’ll be able to methodically address and reduce errors to increase quality.
A/P payment automation will save you cash, earn you extra profit, lessen the risks of fraudulent activity, provide your operations greater transparency, fulfill the customers’ needs, and improve the overall quality of your A/P processes.