Top Reasons to Automate Accounts Payable
While modern technology has made Accounts Payable payment automation indispensable for many organizations, 60 percent of companies in the United States 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 major five reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash specifications, consequently eliminating guesswork. With greater transparency from A/P automation, awareness into the process allows your A/P department to concentrate on tasks and priorities that will impact your department with value add actions.
Enhance internal controls
A manual A/P method is subject to fraud. You add to the pitfalls of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The outdated manual method is affected with lack of awareness, through which can result in failing to recognize a read more segment of liabilities. This may understate operating expenses and therefore overstate earnings, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation offers a complete audit trail of every step in the process, and permits management to swiftly solve potential difficulties.
Your suppliers prefer a more efficient payment method. More efficient payments result in discount rates and cost savings for you. Whenever you pay your customers via virtual credit card, which is a single issued card for a one-time use, you receive monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P mistakes may be very costly and use up many resources to manually clear up. With payment automation, you can see where, when and why issues occurred. In contrast to the manual procedure, more info with automation you’ll be able to methodically address and reduce errors to enhance quality.
A/P payment automation will save you cash, earn you additional revenue, decrease the risks of fraudulent activity, provide your operations greater transparency, meet your customers’ demands, and click here boost the total quality of your A/P processes.