Top Reasons to Automate Accounts Payable
While modern technology has made Accounts Payable payment automation simple for numerous organizations, 60 percent of businesses in the US are not aware of the numerous benefits associated with A/P automation. Leveraging software applications to utilize the method in manner that is seamless and trouble-free, here are our top 5 reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash specifications, therefore getting rid of uncertainty. With greater transparency from A/P automation, visibility into the process allows your A/P department to concentrate on activities and priorities that will impact your department with value add activities.
Improve internal controls
A manual A/P method is prone to fraud. You multiply the threats of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The outdated manual practice is affected with lack of awareness, wherein can result in neglecting to acknowledge a segment of risks. This could understate expenses as well as overstate income, that may cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of every step in the method, and enables management to promptly handle possible difficulties.
Your suppliers want a more effective payment process. Easier payments result in discounts and savings for you. When you pay your customers by means of virtual card, which is a single issued card for a one-time use, you generate monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and use up many resources to manually remedy. With payment automation, you will see where, when and why faults took place. In contrast to the manual process, with automation you’ll be in a position to methodically address and eliminate problems to improve quality.
A/P payment automation can help you save cash, earn you extra cash, decrease the here risks click here of fraudulent activity, get your operations greater transparency, fulfill the customers’ demands, and improve the overall quality of your A/P processes.