Top Reasons Why You Should Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation a standard for a number of companies, 60 % of businesses in the US are unaware of the numerous benefits associated with A/P automation. Leveraging software to implement the process in manner that is seamless and convenient, the following are our major five reasons to automate.
Accounts Payable automation lets A/P to correctly project its pending cash specifications, accordingly eliminating estimation. With better transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and things that will impact your department with value added actions.
Reinforce central controls
A manual A/P process is at risk of fraudulent activity. You multiply the pitfalls of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
The outdated manual practice is affected with lack of awareness, by which can result in failing to realize a segment of liabilities. This can understate operating expenses as well as overstate earnings, which can result in accounting and reporting irregularities and ultimately fraud. A/P automation provides a total audit trail of every part of the process, and allows management to rapidly solve possible problems.
Your suppliers want a more efficient payment method. Easier payments result in discounts and cost savings for you. If you pay your customers with virtual credit card, which is an individual issued card for a one-time use, you will earn monthly cash back incentives. It’s mutually beneficial 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 needless costs with an automated A/P process. A/P problems can be very expensive and take many resources to manually correct. With payment automation, you can see where, when and why problems occurred. Contrary to the manual process, with automation you’ll be in a position to methodically address and get more info reduce mistakes to boost quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraud, bring your operations increased transparency, meet get more info your customers’ needs, and boost the overall quality of your A/P processes.