Top Reasons to Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for numerous organizations, 60 percent of companies in the US are not aware of the many advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and easy, listed here are our major 5 reasons to automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash specifications, therefore getting rid of uncertainty. With increased transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and things that can effect your department with value add activities.
Strengthen central controls
A manual A/P process is at risk of fraud. You add to the pitfalls of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraud.
The obsolete manual process is affected with insufficient visibility, through which can result in failing to identify a part of risks. This can understate expenditures as well as overstate income, which could trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation offers a whole audit trail of every step in the method, and enables management to swiftly resolve potential troubles.
Your vendors read more would like a more efficient payment method. More efficient payments result in savings and cost savings for you. If you pay your clients via virtual card, which is a single issued credit card for a one-time use, you earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems may be very costly and take many resources to manually resolve. With payment automation, you see where, when and why errors transpired. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and get rid of errors to improve quality.
A/P payment automation can save you cash, earn you additional profit, decrease the risks of fraud, get your operations greater transparency, fulfill the customers’ demands, and enrich the total quality of your A/P processes.