Top Reasons to Automate Accounts Payable
Despite the fact that technology makes Accounts Payable payment automation a standard for many businesses, 60 % of businesses in the USA do not know 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.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore getting rid of speculation. With increased transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and priorities that can effect your department with value added activities.
Improve internal controls
A manual A/P process is at risk of fraud. You multiply the pitfalls of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
The outdated manual process is affected with lack of visibility, by which can result in failing to identify a part of liabilities. This can understate expenditures and therefore overstate revenue, which can cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the process, and makes it possible for management to rapidly solve possible issues.
Your vendors prefer a more effective payment process. Easier payments result in discounts and savings for you. here Whenever you pay your clients via virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a income generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and use up website many resources to manually remedy. With payment automation, you can see where, when and why mistakes took place. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate problems to increase quality.
A/P payment automation can help you save cash, earn you additional profit, reduce the risks of fraud, get your operations more transparency, satisfy the customers’ needs, and improve the overall quality of your A/P processes.