Top Reasons to Automate Accounts Payable
Even though modern technology makes Accounts Payable payment automation indispensable for numerous companies, 60 percent of companies in the USA are not aware of the many benefits of A/P automation. Leveraging software applications to utilize the process in manner that is seamless and effortless, the following are our major 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, accordingly removing speculation. With better transparency from A/P automation, awareness into the system allows your A/P department to give attention to activities and things which will impact your department with value add actions.
Enhance central controls
A manual A/P process is subject to fraudulent activity. You add to the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The obsolete manual method suffers from insufficient visibility, in which can result in failing to identify a portion of risks. This can understate operating expenses thereby overstate income, which could cause accounting and reporting irregularities and ultimately fraud. A/P automation produces a whole audit trail of every step in the method, read more and permits management to quickly correct potential complications.
Your vendors would like a more efficient payment method. Easier payments result in deals and cost savings for you. When you pay your customers by way of virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and avoidable costs with an automated A/P process. website A/P problems may be very costly and consume many resources to manually correct. With payment automation, you see where, when and why problems took place. In contrast to the manual procedure, with automation you’ll be in a position to methodically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, lessen the risks of fraudulent activity, get your operations more transparency, meet the customers’ demands, and boost the overall quality of your A/P processes.