Top Reasons to Automate Accounts Payable
While modern technology has made Accounts Payable payment automation indispensable for a number of organizations, 60 percent of businesses in the USA do not know of the countless benefits of A/P automation. Leveraging software applications to utilize the process in manner that is seamless and convenient, here are our best 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash requirements, therefore eliminating uncertainty. With more transparency from A/P automation, awareness into the process allows your A/P department to give attention to activities and things that can impact your department with value added activities.
Strengthen central controls
A manual A/P process is vulnerable to fraudulent activity. You raise the issues of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraudulent activity.
The outdated manual practice suffers from lack of visibility, by get more info which can result in neglecting to acknowledge a portion of liabilities. This could understate operating expenses and therefore overstate earnings, which could lead to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation offers an entire audit trail of each and every part of the method, and makes it possible for management to swiftly resolve possible problems.
Your vendors want a more beneficial payment process. Easier payments result in savings and savings for you. Whenever you pay your clients by way of virtual credit card, which is an individual issued credit card for a click here one-time use, you receive monthly cash back incentives. It’s jointly good 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 problems are costly and read more consume many resources to manually handle. With payment automation, you see where, when and why problems took place. Unlike the manual method, with automation you’ll have the ability to methodically address and reduce mistakes to increase quality.
A/P payment automation can help you save cash, earn you extra profit, lessen the risks of fraud, bring your operations greater transparency, meet the customers’ demands, and boost the overall quality of your A/P processes.