Top Reasons Why You Should Automate Accounts Payable
Although tech has made Accounts Payable payment automation indispensable for many organizations, 60 percent of businesses in the United States are not aware of the countless benefits associated with A/P automation. Leveraging software programs to utilize the process in manner that is seamless and effortless, here are our top five reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash specifications, consequently getting rid of guesswork. With better transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and things that will effect your department with value added activities.
Enhance internal controls
A manual A/P process is at risk of fraud. You multiply the challenges of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraud.
Increase Visibility
The outdated manual process suffers from lack of visibility, wherein can result website in neglecting to realize a segment of risks. This could understate expenditures thereby overstate earnings, which could trigger accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation offers a whole audit trail of each step in the method, and makes it possible for management to promptly click here resolve potential problems.
Satisfy Clients
Your suppliers would like a more effective payment method. More efficient payments result in discounts and cost savings for you. When you pay your clients with virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P mistakes are costly and consume many resources to manually solve. With payment automation, you will see where, when and why errors happened. In contrast to the manual method, with automation you’ll be in a position to systematically address and reduce errors to improve quality.
A/P payment automation can help you save cash, earn you extra earnings, decrease the risks of fraud, bring your operations better transparency, satisfy the customers’ demands, and enrich the overall quality of your A/P processes.