Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation indispensable for a lot of organizations, 60 % of businesses in the US are not aware of the countless advantages to A/P automation. Leveraging software programs to apply the method in manner that is seamless and effortless, here are our best five reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its pending cash requirements, therefore removing guesswork. With increased transparency from A/P automation, awareness into the process allows your A/P department to give attention to activities and priorities that can impact your department with value add actions.
Improve internal controls
A manual A/P method is vulnerable to fraudulent activity. You increase the threats of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
The outdated manual method is affected more info with insufficient awareness, by which can result in neglecting to acknowledge a portion of liabilities. This could understate operating expenses as well as overstate revenue, that may cause accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each part of the method, and lets management to quickly correct potential complications.
Your suppliers would like a more efficient payment process. More efficient payments result in special offers and savings for you. If you pay your clients by way of virtual card, which is an individual issued card for a one-time use, you 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 income generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes are expensive and use up many resources to manually correct. With payment automation, you will see where, when and why problems occurred. Contrary to the manual process, with automation you’ll be in get more info a position to systematically address and get rid of errors to increase quality.
A/P payment automation can save you cash, earn you additional income, reduce the risks of fraudulent activity, get your operations greater transparency, fulfill your customers’ needs, and boost the total quality of your A/P processes.