Top Reasons Why You Should Automate Accounts Payable
While modern technology makes Accounts Payable payment automation a standard for many companies, 60 percent of organizations in the United States do not know of the countless benefits associated with A/P automation. Leveraging software to implement the method in manner that is seamless and trouble-free, listed here are our best 5 reasons to automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash specifications, accordingly removing speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that can impact your department with value add actions.
Improve central controls
A manual A/P method is at risk of fraud. You increase the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
The obsolete manual practice suffers from insufficient visibility, wherein can result in neglecting to realize a segment of liabilities. This could understate expenses as well as overstate earnings, which can lead to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation produces an entire audit trail of every step in the method, and allows management to promptly resolve possible issues.
Your suppliers prefer a more beneficial payment method. Easier payments result in deals and cost savings for you. Whenever you pay your clients with virtual credit card, which is a single issued credit card for a one-time use, you generate 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 cash generator.
Prevent error, delay, and avoidable costs with an automated A/P check here process. A/P errors can be very expensive and consume many resources to more info manually clear up. With payment automation, you see where, when and why problems transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate mistakes to enhance quality.
A/P payment automation will save you cash, earn you extra income, reduce the risks of fraud, provide your operations greater transparency, meet the customers’ demands, and advance the overall quality of your A/P processes.