Top Reasons Why You Should Automate Accounts Payable
While modern technology makes Accounts Payable payment automation indispensable for many organizations, 60 % of businesses in the United States do not know of the many benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and easy, the following are our top 5 reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash specifications, therefore removing guesswork. With greater transparency from A/P automation, awareness into the system allows your A/P department to give attention to tasks and things that will effect your department with value add activities.
Strengthen central controls
A manual A/P method is at risk of fraud. You add to the threats of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraudulent activity.
The outdated manual practice suffers from insufficient visibility, through which can result in neglecting to realize a portion of risks. This can understate expenses as well as overstate earnings, that may cause accounting and reporting abnormalities and ultimately fraud. A/P automation provides an entire audit trail of each and every step in the method, and enables management to promptly fix possible issues.
Your vendors prefer a more beneficial payment read more process. More efficient payments result in discounts and savings for you. Whenever you pay your clients by means of virtual card, which is a single issued credit card for a one-time use, you receive read more monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and use up many resources to manually clear up. With payment automation, you see where, when and why issues occurred. In contrast to the manual method, with automation you’ll be in a position to methodically address and reduce problems to increase quality.
A/P payment automation will save you cash, earn you additional earnings, reduce the risks of fraud, get your operations increased transparency, satisfy your customers’ demands, and enhance the overall quality of your A/P processes.