Top Reasons to Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation indispensable for a number of companies, 60 % of companies in the US are not aware of the numerous advantages of A/P automation. Leveraging software to implement the process in manner that is seamless and effortless, the following are our best five reasons why you should automate.
Accounts Payable automation allows A/P to accurately project its pending cash specifications, therefore eliminating guesswork. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with tasks and things that can effect your department with value added actions.
Strengthen internal controls
A manual A/P process is prone to fraudulent activity. You add to the pitfalls of human oversight, 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 practice is affected with lack of visibility, in which can result in neglecting to acknowledge a part of risks. This could understate expenses and therefore overstate revenue, which can lead to accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a complete audit trail of each and every part of the process, and enables management to quickly solve possible troubles.
Your suppliers prefer a more beneficial payment method. Easier payments result in discounts and cost savings for you. When you pay your clients by means of virtual credit card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P mistakes are costly and use up many resources to manually fix. With payment automation, you more info see check here where, when and why mistakes transpired. Unlike the manual method, with automation you’ll be in a position to systematically address and get rid of errors to improve quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraudulent activity, provide your operations more transparency, fulfill your customers’ needs, and advance the total quality of your A/P processes.