Top Reasons to Automate Accounts Payable
Even though tech makes Accounts Payable payment automation a standard for numerous organizations, 60 % of businesses in the USA are unaware of the many advantages to A/P automation. Leveraging software applications to apply the process in manner that is seamless and convenient, listed here are our main 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, accordingly removing guess work. With better transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and things which will effect your department with value added actions.
Improve central controls
A manual A/P method is at risk of fraudulent activity. You multiply the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
The obsolete manual practice suffers from insufficient awareness, wherein can result in failing to realize a portion of risks. This can understate expenditures and therefore overstate revenue, that may cause accounting and reporting irregularities and ultimately fraud. A/P automation provides a total audit trail of each step in the method, and makes it possible for management to rapidly resolve possible complications.
Your vendors want a more beneficial payment process. More efficient payments result in discount rates and savings for you. Whenever you pay your customers by way of virtual credit card, which is an individual issued card for a one-time use, you receive monthly cash rebates. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, check here seamless payments and your A/P Department pivots to a cash 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 errors occurred. Contrary to the manual method, with automation you’ll be able to methodically address and eliminate problems to enhance quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraudulent activity, bring your operations increased transparency, meet your customers’ needs, and enrich the overall quality of your A/P processes.