Top Reasons to Automate Accounts Payable
While tech has made Accounts Payable payment automation simple for a number of businesses, 60 percent of corporations in the United States do not know of the numerous benefits associated with A/P automation. Leveraging software to implement the method in manner that is seamless and trouble-free, the following are our best five reasons to automate.
Accounts Payable automation lets A/P to correctly project its pending cash specifications, therefore removing guesswork. With greater transparency from A/P automation, awareness into the system allows your A/P department to deal with tasks and priorities which will impact your department with value add activities.
Improve internal controls
A manual A/P method is at risk of fraudulent activity. You add to the pitfalls of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The outdated manual process is affected with insufficient visibility, in which can result in neglecting to identify a portion of risks. This can understate expenditures as well as overstate earnings, which can trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the process, and lets management to rapidly deal with potential problems.
Your suppliers want a more effective payment process. More efficient payments result in discount rates and cost savings for you. If you pay your customers with virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your get more info A/P Department pivots to a income generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems are costly and consume many resources to manually handle. With payment automation, you can see where, when here and why errors occurred. Contrary to the manual process, with automation you’ll be here able to methodically address and get rid of errors to boost quality.
A/P payment automation can help you save cash, earn you additional earnings, reduce the risks of fraud, get your operations greater transparency, satisfy the customers’ demands, and boost the overall quality of your A/P processes.