Top Reasons to Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation a standard for a number of organizations, 60 % of companies in the USA are unaware of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and convenient, the following are our main five reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently eliminating guess work. With better transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and things which will effect your department with value add activities.
Enhance internal controls
A manual A/P method is susceptible to fraudulent activity. You multiply the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
The obsolete manual process suffers from lack of visibility, wherein can result in failing to recognize a portion of risks. This may understate expenses thereby overstate revenue, which could cause accounting and reporting malfunctions and ultimately fraud. A/P automation delivers an entire audit trail of every step in the method, and lets management to swiftly handle possible troubles.
Your suppliers would like a more effective payment method. Easier payments result in discounts and cost savings for you. When you pay your clients by way of virtual card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes can be very expensive and consume many resources to manually solve. With payment automation, you more info can see where, when and why issues transpired. Unlike the manual process, with automation you’ll be able to methodically address and get rid of errors to improve quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraudulent activity, provide your operations greater transparency, fulfill the customers’ demands, and advance the overall quality of your A/P processes.