Top Reasons to Automate Accounts Payable
While modern technology makes Accounts Payable payment automation a standard for a lot of businesses, 60 percent of businesses in the USA are unaware of the numerous benefits of A/P automation. Leveraging software programs to utilize the process in manner that is seamless and convenient, the following are our top 5 reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash requirements, accordingly eliminating guess work. With increased transparency from A/P automation, visibility into the system allows your A/P department to deal with activities and priorities that can effect your department with value add activities.
Strengthen central controls
A manual A/P method is vulnerable to fraud. You add to the challenges of human oversight, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraud.
The outdated manual process is affected with insufficient awareness, wherein can result in neglecting to identify a part of liabilities. This could understate expenses thereby overstate revenue, which can trigger accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each step in the method, and lets management to promptly fix possible troubles.
Your vendors want a more beneficial payment process. Easier payments result in special discounts and savings for you. If you pay your clients with virtual card, which is a single issued card for a one-time use, you generate monthly cash back incentives. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are costly and take many resources to manually resolve. With payment automation, you will see where, when and why website faults transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and reduce issues to improve quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraudulent activity, bring your operations better more info transparency, fulfill the customers’ needs, and enhance the overall quality of your A/P processes.