Top Reasons Why You Should Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for many organizations, 60 percent of businesses in the United States are not aware of the countless advantages of A/P automation. Leveraging software applications to apply the process in manner that is seamless and easy, listed here are our best five reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its pending cash requirements, therefore getting rid of uncertainty. With increased transparency from A/P automation, visibility into the system allows your A/P department to concentrate on activities and priorities which will impact your department with value added actions.
Improve internal controls
A manual A/P process is prone to fraudulent activity. You raise the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraud.
The outdated manual practice is affected with insufficient visibility, in which can result in neglecting to recognize a segment of risks. This could understate operating expenses thereby overstate revenue, which could contribute to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the method, and enables management to swiftly solve possible problems.
Your vendors prefer a more effective payment process. Easier payments result in special offers and savings for you. Whenever you pay your clients with virtual card, which is a single issued card for a one-time use, you will earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are costly and take many resources to manually solve. With payment automation, you can see where, when and why problems happened. In contrast to the manual method, with automation you’ll have the ability to systematically address and get rid of problems to increase quality.
A/P payment automation can help you save cash, earn you additional check here income, reduce the risks of fraud, provide your more info operations greater transparency, meet the customers’ needs, and enhance the total quality of your A/P processes.