Top Reasons to Automate Accounts Payable
Although tech makes Accounts Payable payment automation a standard for a number of companies, 60 % of organizations in the United States do not know of the countless benefits of A/P automation. Leveraging software programs to apply the method in manner that is seamless and convenient, the following are our top five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, accordingly removing speculation. With better transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and priorities which will effect your department with value added actions.
Strengthen internal controls
A manual A/P process is subject to fraud. You multiply the threats of human oversight, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraud.
The obsolete manual practice suffers from lack of visibility, by which can result in failing to acknowledge a portion of risks. This may understate operating expenses and therefore overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation produces an entire audit trail of each and every part of the process, and enables management to rapidly handle potential complications.
Your suppliers prefer a more efficient payment method. Easier payments result in discount rates and savings for you. If you pay your customers via virtual credit card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s equally good 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 pointless costs with an automated A/P process. A/P problems may be very costly and take many resources to manually solve. With payment automation, you can see where, when and why errors occurred. Contrary to the manual method, with automation you’ll have the ability to systematically address and reduce problems read more to improve quality.
A/P payment automation will save you cash, earn you extra income, reduce the risks of fraudulent activity, get your operations increased transparency, fulfill your customers’ needs, and enhance the overall quality of your A/P processes.