Top Reasons to Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation simple for a number of businesses, 60 % of organizations in the US are unaware of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and convenient, listed here are our major five reasons to automate.
Accounts Payable automation enables A/P to accurately project its pending cash requirements, accordingly removing estimation. With greater transparency from A/P automation, awareness into the process allows your A/P department to concentrate on tasks and priorities that will impact your department with value added activities.
Strengthen internal controls
A manual A/P method is prone to fraud. You add to the pitfalls of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
The outdated manual method suffers from lack of awareness, wherein can result in failing to identify a part of liabilities. This may understate expenditures as well as overstate income, that may lead get more info to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each part of the method, and permits management to promptly deal with potential troubles.
Your suppliers want a more beneficial payment process. More efficient payments result in savings and savings for you. When you pay your customers by way of virtual credit card, which is an individual issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and needless costs with an automated A/P process. A/P errors are costly and take many resources to manually clear up. With payment automation, you can see where, when and why mistakes happened. In contrast to the manual method, with automation you’ll be in a position to methodically address and eliminate issues to enhance quality.
A/P payment automation will save you cash, earn you extra income, reduce the risks of fraudulent activity, bring your operations more info increased transparency, fulfill the customers’ needs, and improve the overall quality of your A/P processes.