Top Reasons to Automate Accounts Payable
While modern technology makes Accounts Payable payment automation indispensable for numerous corporations, 60 % of companies in the US do not know of the numerous benefits of A/P automation. Leveraging software applications to implement the process in manner that is seamless and trouble-free, here are our best five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently getting rid of speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with activities and priorities that can impact your department with value added actions.
Strengthen central controls
A manual A/P method is prone to fraudulent activity. You add to the risks of human error, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
The obsolete manual process is affected check here with lack of visibility, wherein can result in neglecting to acknowledge a portion of liabilities. This could understate expenses thereby overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation produces a complete audit trail of each and every step in the method, and permits website management to rapidly resolve potential problems.
Your vendors want a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. If you pay your clients by way of virtual card, which is a single issued credit card for a one-time use, you will earn monthly cash back incentives. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes are costly and consume many resources to manually solve. With payment automation, you see where, when and why mistakes occurred. Contrary to the manual method, with automation you’ll be able to methodically address and get rid of errors to increase quality.
A/P payment automation can save you cash, earn you extra revenue, decrease the risks of fraudulent activity, get your operations better transparency, fulfill your customers’ demands, and advance the total quality of your A/P processes.