Top Reasons Why You Should Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation indispensable for a number of organizations, 60 percent of organizations in the US do not know of the many advantages to A/P automation. Leveraging software programs to implement the process in manner that is seamless and convenient, the following are our top 5 reasons why you should automate.
Accounts Payable automation allows A/P to accurately project its pending cash requirements, consequently getting rid of speculation. With better transparency from A/P automation, awareness into the process allows your A/P department to focus on activities and things which will effect your department with value added actions.
Reinforce internal controls
A manual A/P process is at risk of fraudulent activity. You raise the threats of human error, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraudulent activity.
The obsolete manual process is affected with insufficient visibility, through which can result in failing to acknowledge a part of liabilities. This may understate expenses as well as overstate earnings, that may contribute to accounting and reporting malfunctions and ultimately fraud. A/P automation offers a whole audit trail of each step get more info in the process, and allows management to rapidly resolve possible issues.
Your vendors would like a more beneficial payment process. More efficient payments result in discount rates and savings for you. When you pay your customers with virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. here Your clients benefit from more efficient, seamless payments and your A/P Department pivots to a income generator.
Prevent error, delay, and avoidable costs with an automated A/P process. A/P mistakes are expensive and take many resources to manually solve. With payment automation, you can see where, when and why problems occurred. Contrary to the manual process, with automation you’ll be in a position to systematically address and reduce mistakes to boost quality.
A/P payment automation can help you save cash, earn you additional earnings, lessen the risks of fraud, get your operations better transparency, meet your customers’ needs, and improve the overall quality of your A/P processes.