Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 % of corporations in the United States are not aware of the numerous benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and easy, listed here are our main 5 reasons to automate.
Accounts Payable automation lets A/P to accurately project its pending cash requirements, accordingly eliminating estimation. With increased transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and priorities that can effect your department with value add activities.
Strengthen central controls
A manual A/P method is susceptible to fraud. 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 read more to identify a portion of risks. This can understate operating expenses thereby overstate income, that may cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides a complete audit trail of each part of the process, and allows management to swiftly handle possible troubles.
Your vendors prefer a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. When you pay your customers via virtual card, which is a single issued card for a one-time use, you generate monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and use up many resources check here to manually solve. With payment automation, you can see where, when and more info why mistakes occurred. Unlike the manual procedure, with automation you’ll be in a position to systematically address and reduce mistakes to enhance quality.
A/P payment automation can help you save cash, earn you additional cash, reduce the risks of fraud, bring your operations increased transparency, fulfill your customers’ demands, and boost the overall quality of your A/P processes.