Top Reasons to Automate Accounts Payable
Despite the fact that modern technology makes Accounts Payable payment automation a standard for numerous corporations, 60 % of companies in the USA do not know of the many benefits of A/P automation. Leveraging software to apply the process in manner that is seamless and effortless, the following are our best five reasons to automate.
Accounts Payable automation lets A/P to correctly project its outstanding cash requirements, accordingly getting rid of uncertainty. With better transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and things that can impact your department with value add actions.
Reinforce internal controls
A manual A/P method is vulnerable to fraud. You raise the threats of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
The outdated manual practice is affected with lack of awareness, in which can result in neglecting to realize a part of risks. This can understate expenditures as well as overstate income, which can cause accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides a whole audit trail of each and every part of the method, and allows management to rapidly deal with possible difficulties.
Your suppliers want a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. Whenever you pay your customers by means of virtual card, which is a single issued credit card for a one-time use, you will earn monthly cash back incentives. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P errors may be very costly read more and use up many resources to here manually correct. With payment automation, you will see where, when and why mistakes occurred. Contrary to the manual procedure, with automation you’ll be in a position to systematically address and reduce problems to improve quality.
A/P payment automation will save you cash, earn you extra cash, decrease the risks of fraudulent activity, bring your operations better transparency, meet the customers’ needs, and boost the total quality of your A/P processes.