Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation indispensable for a number of corporations, 60 % of organizations in the USA are unaware of the numerous advantages to A/P automation. Leveraging software applications to utilize the method in manner that is seamless and easy, listed here are our main 5 reasons to automate.
Accounts Payable automation enables A/P to accurately project its pending cash specifications, consequently eliminating speculation. With greater transparency from A/P automation, visibility into the system allows your A/P department to focus on tasks and priorities that can impact your department with value added activities.
Enhance internal controls
A manual A/P method is subject to fraud. You add to the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The obsolete manual process suffers from insufficient visibility, wherein can result in failing to recognize a more info segment of risks. This may understate expenses thereby overstate revenue, which can trigger accounting and reporting abnormalities and ultimately fraud. A/P automation provides an entire audit trail of each and every step in the process, and lets management to promptly correct possible complications.
Your suppliers want a more efficient payment method. Easier payments result in discount rates and cost savings for you. Whenever you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P errors are expensive and take many resources to manually remedy. With payment automation, you will see where, when and why mistakes took place. Unlike the manual method, with automation you’ll have the ability to methodically address and eliminate errors to boost quality.
A/P payment automation can help you save cash, earn you additional revenue, decrease the risks of fraudulent activity, get your operations increased transparency, satisfy your customers’ demands, and enrich the total quality of your A/P processes.