Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation a standard for many corporations, 60 percent of companies in the USA are unaware of the numerous benefits associated with A/P automation. Leveraging software programs to implement the process in manner that is seamless and easy, the following are our main 5 reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its pending cash specifications, therefore eliminating uncertainty. With better transparency from A/P automation, awareness into the system allows your A/P department to focus on tasks and things which will effect your department with value add actions.
Reinforce central controls
A manual A/P process is subject to fraudulent activity. You add to the pitfalls of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
The obsolete manual method suffers from insufficient visibility, wherein can result in neglecting to acknowledge a part of liabilities. This may understate operating expenses and therefore overstate income, which could contribute to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation offers an entire audit trail of each step in the method, and permits management to promptly correct potential issues.
Your suppliers prefer a more effective payment process. Easier payments result in discount rates and cost savings for you. Whenever you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually resolve. With payment automation, you see where, website when and why faults took place. In contrast to the manual process, with automation you’ll be in a position to get more info systematically address and eliminate issues to boost quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, bring your operations better transparency, fulfill the customers’ demands, and improve the total quality of your A/P processes.