Top Reasons Why You Should Automate Accounts Payable
Although technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 % of companies in the USA are unaware of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and convenient, the following are our main five reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently getting rid of 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 added actions.
Improve internal controls
A manual A/P method is subject to fraudulent activity. You multiply the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
The obsolete manual process suffers from insufficient visibility, wherein can result click here in failing to realize a portion of liabilities. This may understate expenditures and therefore overstate website revenue, that may trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation offers a complete audit trail of each and every step in the method, and enables management to promptly fix possible difficulties.
Your vendors prefer a more beneficial payment method. More efficient payments result in deals and cost savings for you. Whenever you pay your clients via virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash back incentives. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P mistakes are expensive and consume many resources to manually correct. With payment automation, you see where, when and why errors occurred. Contrary to the manual method, with automation you’ll have the ability to methodically address and reduce issues to enhance quality.
A/P payment automation can help you save cash, earn you extra profit, reduce the risks of fraudulent activity, bring your operations better transparency, meet the customers’ demands, and enrich the overall quality of your A/P processes.