Top Reasons Why You Should Automate Accounts Payable
While modern technology makes Accounts Payable payment automation indispensable for many corporations, 60 % of organizations in the US do not know of the many advantages to A/P automation. Leveraging software applications to implement the method in manner that is seamless and effortless, here are our major five reasons to automate.
Accounts Payable automation enables A/P to accurately project its pending cash specifications, consequently getting rid of guesswork. With more transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities which will impact your department with value added actions.
Strengthen central controls
A manual A/P method is susceptible to fraud. You raise the issues of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
The obsolete manual practice suffers from insufficient awareness, wherein can result in failing to recognize a segment of risks. This can understate expenditures as well as overstate income, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation produces a complete audit trail of every step in the method, and here makes it possible for management to rapidly deal with possible issues.
Your suppliers want a more beneficial payment process. Easier payments result in deals and cost savings for you. If you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems may be very costly and take many resources to manually solve. With payment automation, you can see where, when and why errors occurred. Unlike the manual procedure, with automation you’ll be in a position to methodically address and get rid of mistakes to enhance quality.
A/P payment automation can save you cash, earn you additional cash, decrease the risks of fraud, bring your operations better transparency, satisfy your customers’ demands, and improve the total quality of your A/P processes.