Top Reasons Why You Should Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for many businesses, 60 percent of corporations in the USA are not aware of the many advantages to A/P automation. Leveraging software to apply the process in manner that is seamless and convenient, the following are our major 5 reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash specifications, accordingly eliminating estimation. With increased transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Strengthen central controls
A manual A/P method is susceptible to fraudulent activity. You multiply the pitfalls 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 obsolete manual process suffers from lack of visibility, in which can result in failing to recognize a segment of risks. This can understate operating expenses and therefore overstate revenue, which could result in accounting and reporting malfunctions and ultimately fraud. A/P automation provides an entire audit trail of every part of the method, and allows management to rapidly solve potential issues.
Your suppliers would like a more beneficial payment process. More efficient payments result in discounts and cost savings for you. If you pay your clients with virtual credit card, which is an individual issued card for a one-time use, you receive monthly cash back incentives. It’s equally beneficial click here for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P problems may be very costly and take many resources to manually fix. With payment automation, you can see where, when and why issues transpired. In contrast to the manual process, with automation you’ll be in a position to systematically address and reduce errors to enhance quality.
A/P payment automation can save you cash, earn you additional cash, lessen the risks of fraudulent activity, get your operations better transparency, fulfill the customers’ demands, and enrich the overall quality of your A/P processes.