Top Reasons Why You Should Automate Accounts Payable
Although tech makes Accounts Payable payment automation a standard for a number of organizations, 60 % of businesses in the United States are not aware of the countless advantages of A/P automation. Leveraging software programs to utilize the process in manner that is seamless and easy, listed here are our best 5 reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, therefore getting rid of guess work. With greater transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and things which will impact your department with value added activities.
Strengthen central controls
A manual A/P process is prone to fraud. You add to the pitfalls of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The outdated manual method suffers from insufficient awareness, through which can result in neglecting to realize a portion of risks. This can understate expenditures click here and therefore overstate earnings, which can trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every step more info in the method, and allows management to swiftly solve possible issues.
Your vendors prefer a more effective payment process. Easier payments result in special offers and savings for you. When you pay your clients with virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P mistakes can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why faults transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraud, bring your operations better transparency, satisfy the customers’ needs, and boost the overall quality of your A/P processes.