Top Reasons to Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation a standard for a number of corporations, 60 % of corporations in the United States are not aware of the many benefits of A/P automation. Leveraging software applications to implement the method in manner that is seamless and convenient, the following are our main five reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash specifications, accordingly removing uncertainty. With better transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and priorities that can effect your department with value add actions.
Reinforce internal controls
A manual A/P process is susceptible to fraudulent activity. You raise the issues of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
The obsolete manual method suffers from insufficient visibility, by which can result in neglecting to acknowledge a segment of risks. This could understate expenses thereby overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. read more A/P automation produces a total audit trail of each and every step in get more info the process, and makes it possible for management to swiftly resolve potential problems.
Your vendors prefer a more effective payment process. Easier payments result in savings and cost savings for you. When you pay your customers by way of virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and needless costs with an automated A/P process. A/P problems are costly and consume many resources to manually remedy. With payment automation, you see where, when and why errors happened. Unlike the manual procedure, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraud, provide your operations greater transparency, satisfy the customers’ needs, and enhance the total quality of your A/P processes.