Top Reasons to Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for many companies, 60 percent of companies in the USA are unaware of the countless benefits associated with A/P automation. Leveraging software programs to utilize the process in manner that is seamless and easy, listed here are our best 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, therefore getting rid of guesswork. With increased transparency from A/P automation, visibility into the process allows your A/P department to give attention to activities and things which will effect your department with value add actions.
Strengthen central controls
A manual A/P method is susceptible to fraudulent activity. You increase the challenges of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
The outdated manual process is affected with lack of awareness, through which can result in neglecting to acknowledge a segment of liabilities. This may understate expenditures and therefore overstate earnings, which can contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a total audit trail of each and every step in the process, and enables management to promptly handle possible troubles.
Your suppliers would like a more efficient payment method. Easier payments result in deals and cost savings for you. When you pay your customers by way of virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash back incentives. It’s jointly beneficial 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 unnecessary costs with an automated A/P process. A/P errors are expensive and use up click here many resources to manually solve. With payment automation, you can see where, when and why problems took place. Contrary to the manual method, with automation you’ll be in a position to methodically address and get rid of errors to improve quality.
A/P payment automation get more info can save you cash, earn you additional cash, lessen the risks of fraudulent activity, get your operations increased transparency, meet the customers’ needs, and boost the overall quality of your A/P processes.