Top Reasons Why You Should Automate Accounts Payable
Despite the fact that modern technology makes Accounts Payable payment automation simple for a number of companies, 60 % of organizations in the US are not aware of the many advantages of A/P automation. Leveraging software applications to apply the process in manner that is seamless and convenient, here are our major 5 reasons why you should automate.
Accounts Payable automation lets A/P to correctly project its pending cash requirements, accordingly getting rid of speculation. With more transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that can impact your department with value added actions.
Enhance central controls
A manual A/P method is at risk of fraudulent activity. You raise the risks of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
The obsolete manual method suffers from insufficient awareness, in which can result in neglecting to identify a portion of liabilities. This can understate expenditures as well as overstate income, that may cause accounting and reporting malfunctions and ultimately fraud. A/P automation provides an entire audit click here trail of each step in the more info process, and permits management to quickly correct potential difficulties.
Your vendors want a more beneficial payment method. Easier payments result in discounts and cost savings for you. If you pay your customers with virtual card, which is an individual issued card for a one-time use, you generate monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a income generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P errors are expensive and take many resources to manually remedy. With payment automation, you see where, when and why problems occurred. In contrast to the manual procedure, with automation you’ll have the ability to methodically address and eliminate errors to boost quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraudulent activity, bring your operations better transparency, fulfill the customers’ demands, and improve the overall quality of your A/P processes.