Top Reasons to Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation a standard for many businesses, 60 % of businesses in the United States are not aware of the many benefits associated with A/P automation. Leveraging software programs to implement the method in manner that is seamless and effortless, listed here are our main 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, therefore getting rid of guesswork. With greater transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and things which will effect your department with value add activities.
Improve central controls
A manual A/P process is prone to fraudulent activity. You raise the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
The obsolete manual process is affected with insufficient visibility, by which can result in neglecting to realize a part of liabilities. This can understate expenditures thereby overstate income, which can contribute to accounting and reporting irregularities and ultimately fraud. A/P automation delivers an entire audit trail of every step in the method, and makes it possible for management to quickly handle potential difficulties.
Your vendors prefer a more beneficial payment method. More efficient payments result in special offers and savings for you. When you pay your customers by means of virtual card, which is a single issued card for a one-time use, you will earn monthly cash rebates. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, here and needless costs with an automated A/P process. A/P errors are costly and use up many resources to manually clear up. With payment automation, you will see where, when get more info and why problems happened. Unlike the manual method, with automation you’ll have the ability to methodically address and get rid of errors to boost quality.
A/P payment automation can help you save cash, earn you additional income, lessen the risks of fraud, get your operations more transparency, satisfy the customers’ demands, and advance the overall quality of your A/P processes.