Top Reasons to Automate Accounts Payable
Even though modern technology has made Accounts Payable payment automation indispensable for many organizations, 60 % of organizations in the USA are unaware of the countless advantages of A/P automation. Leveraging software applications to apply the method in manner that is seamless and convenient, listed here are our best five reasons why you should automate.
Accounts Payable automation lets A/P to correctly project its outstanding cash requirements, therefore removing estimation. With better transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Enhance internal controls
A manual A/P method is subject to fraud. You add to the pitfalls of human oversight, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The obsolete manual process is affected with insufficient visibility, through which can result in neglecting to identify a part of liabilities. This may understate expenditures thereby overstate revenue, which could contribute to accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a total audit trail of every step in the method, and enables management to swiftly correct possible troubles.
Your vendors would like a more beneficial payment process. More efficient get more info payments result in special offers and cost 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 receive monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P errors are expensive and consume many resources to manually handle. With payment automation, you see where, when and why errors occurred. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and reduce mistakes to enhance quality.
A/P payment automation can save you cash, earn you additional earnings, reduce the risks of fraud, bring your operations greater transparency, satisfy the customers’ demands, and enrich the total quality of your A/P processes.