Top Reasons to Automate Accounts Payable
Although tech has made Accounts Payable payment automation indispensable for a number of companies, 60 % of businesses in the USA are unaware of the many benefits associated with A/P automation. Leveraging software to apply the process in manner that is seamless and easy, the following are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its pending cash requirements, consequently eliminating guesswork. With greater transparency from A/P automation, awareness into the system allows your A/P department to deal with activities and priorities that can impact your department with value add actions.
Reinforce internal controls
A manual A/P method is susceptible to fraudulent activity. You raise the threats of human error, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
Enhance Visibility
The outdated manual practice suffers from lack of awareness, wherein can result in failing to acknowledge a segment of risks. This may understate expenses thereby overstate revenue, that may cause accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation delivers an entire audit trail of each and every part of the method, and enables management to swiftly correct possible issues.
Satisfy Clients
Your vendors prefer a more efficient check here payment process. Easier payments result in discount rates and savings for you. When you pay your customers via virtual credit card, which is website an individual issued card for a one-time use, you generate monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Improve Quality
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P problems may be very costly and use up many resources to manually correct. With payment automation, you will see where, when and get more info why issues occurred. Contrary to the manual method, with automation you’ll be able to methodically address and eliminate issues to increase quality.
A/P payment automation can save you cash, earn you additional income, lessen the risks of fraud, provide your operations increased transparency, satisfy your customers’ needs, and enrich the total quality of your A/P processes.