Top Reasons Why You Should Automate Accounts Payable
Although technology has made Accounts Payable payment automation indispensable for numerous companies, 60 percent of companies in the US are unaware of the countless benefits of A/P automation. Leveraging software to apply the process in manner that is seamless and easy, the following are our major five reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its pending cash requirements, accordingly getting rid of guess work. With more transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and priorities that will effect your department with value added actions.
Improve internal controls
A manual A/P process is susceptible to fraud. You raise the challenges of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual method suffers from lack of awareness, by which can result in failing to acknowledge a part of liabilities. This can understate expenses as well as overstate revenue, which could cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation produces a whole audit trail of each and every part of the process, and enables management to promptly handle potential difficulties.
Your vendors prefer a more effective payment method. More efficient payments result in website deals and cost savings for you. When you pay your clients via virtual card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your customers accounts payable automation benefit from more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P errors can be very expensive and use up many resources to manually solve. With payment automation, you will see where, when and why issues transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you additional revenue, lessen the risks of fraudulent activity, get your operations get more info more transparency, satisfy your customers’ needs, and improve the total quality of your A/P processes.