Top Reasons to Automate Accounts Payable
While modern technology makes Accounts Payable payment automation simple for many organizations, 60 % of corporations in the US are unaware of the numerous advantages of A/P automation. Leveraging software applications to apply the method in manner that is seamless and easy, listed here are our top five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, accordingly getting rid of guess work. With better 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 activities.
Reinforce internal controls
A manual A/P method is at risk of fraudulent activity. You add to the threats of human error, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
Capitalize on Visibility
The outdated manual practice suffers from lack of awareness, in which can result in failing to acknowledge a segment of risks. This may read more understate expenses thereby overstate revenue, which can trigger accounting and reporting abnormalities and ultimately fraud. A/P automation provides an entire audit trail of every step in the process, and lets management to quickly handle possible problems.
Your suppliers want a more effective payment process. Easier payments result in special discounts and savings for you. Whenever you pay your customers by way of virtual credit card, which is an individual issued credit card for a one-time use, you receive monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and avoidable costs with an automated A/P process. A/P problems may be very costly and take many resources to manually resolve. With payment automation, you see where, when and why errors occurred. Unlike the manual process, with automation you’ll be able to systematically address and reduce problems to increase quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, provide your operations more transparency, meet the customers’ needs, and boost the overall quality of your A/P processes.