Top Reasons to Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation a standard for a number of organizations, 60 percent of companies in the US do not know of the many benefits associated with A/P automation. Leveraging software programs to utilize the method in manner that is seamless and convenient, here are our best 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its pending cash specifications, therefore getting rid of speculation. With increased transparency from A/P automation, visibility into the process allows your A/P department to concentrate on activities and things that can effect your department with value add activities.
Enhance internal controls
A manual A/P process is susceptible to fraudulent activity. You add to the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Boost Visibility
The obsolete manual method suffers from insufficient awareness, by which can result in neglecting to realize a part of liabilities. This may understate expenditures and therefore overstate revenue, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation delivers a whole audit trail of every part of the process, and makes it possible for management to rapidly solve possible difficulties.
Please Customers
Your vendors would check here like a more effective payment process. read more More efficient payments result in deals and savings for you. If you pay your clients via virtual card, which is an individual issued card for a one-time use, you receive monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Improve Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P errors can be very expensive get more info and take many resources to manually fix. With payment automation, you will see where, when and why errors happened. In contrast to the manual procedure, with automation you’ll be in a position to systematically address and eliminate mistakes to increase quality.
A/P payment automation will save you cash, earn you additional revenue, reduce the risks of fraud, bring your operations greater transparency, satisfy your customers’ demands, and enrich the overall quality of your A/P processes.