Top Reasons to Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation a standard for many companies, 60 % of organizations in the United States are not aware of the countless benefits associated with A/P automation. Leveraging software to implement the method in manner that is seamless and trouble-free, here are our best 5 reasons to automate.
Accounts Payable automation allows A/P to accurately project its pending cash requirements, consequently removing guess work. With increased transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and priorities that can impact your department with value added activities.
Strengthen internal controls
A manual A/P process is vulnerable to fraudulent activity. You increase the threats 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 discourage fraudulent activity.
The obsolete manual practice is affected with lack of visibility, by which can result in neglecting to recognize a part of risks. This may understate operating expenses as well as overstate earnings, which could trigger accounting and reporting abnormalities and ultimately fraud. A/P automation provides a total audit trail of every part get more info of click here the process, and permits management to rapidly deal with potential troubles.
Your vendors want a more beneficial payment process. Easier payments result in discount rates and cost savings for you. When you pay your clients by means of virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P errors are expensive and take many resources to manually remedy. With payment automation, you will see where, when and why mistakes occurred. Contrary to get more info the manual process, with automation you’ll be able to systematically address and get rid of errors to enhance quality.
A/P payment automation can save you cash, earn you additional profit, reduce the risks of fraudulent activity, get your operations increased transparency, satisfy your customers’ demands, and advance the total quality of your A/P processes.