Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for a number of organizations, 60 % of businesses in the United States are not aware of the numerous benefits of A/P automation. Leveraging software programs to utilize the process in manner that is seamless and easy, here are our major five reasons to automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash specifications, accordingly removing guess work. With better transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and things which will effect your department with value added activities.
Enhance internal controls
A manual A/P method is vulnerable to fraud. You add to the risks of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
The outdated manual practice is affected with lack of awareness, in which can result in failing to recognize a part of liabilities. This may understate expenses as well as overstate earnings, that may cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a total audit trail of each and every step in the process, and allows management to swiftly solve potential complications.
Your suppliers would like a more effective payment method. Easier payments result in special offers and savings for you. When you pay your clients by way of virtual card, which is an individual issued card for a one-time use, you earn monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, here delay, and unneeded costs with an automated A/P process. A/P mistakes may be very costly and take many resources to manually fix. With payment automation, you will see where, when and why mistakes occurred. In contrast to the manual process, with automation you’ll have the ability to systematically more info address and reduce issues to increase quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, get your operations greater transparency, satisfy the customers’ needs, and improve the total quality of your A/P processes.