Top Reasons Why You Should Automate Accounts Payable
Although technology has made Accounts Payable payment automation indispensable for a lot of organizations, 60 % of organizations in the USA are not aware of the countless benefits associated with A/P automation. Leveraging software applications to utilize the process in manner that is seamless and trouble-free, listed here are our major 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash requirements, consequently removing speculation. With more transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and priorities that will impact your department with value add activities.
Strengthen internal controls
A manual A/P process is susceptible to fraud. You multiply the threats of human oversight, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
The outdated manual practice is affected with lack of visibility, by which can result in failing to realize a portion of risks. This could understate expenditures and therefore overstate revenue, which could trigger accounting and reporting malfunctions and ultimately fraud. A/P automation produces a whole audit trail of every part of the method, and makes it possible for management to swiftly handle possible troubles.
Your vendors prefer a more effective payment process. More efficient payments result in discount rates 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 collectively beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P problems are expensive and use up many resources to manually clear up. With payment automation, you can see where, when and why problems took place. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, decrease the click here risks of fraud, get your operations increased transparency, meet your customers’ demands, and improve the total quality of your A/P processes.