Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation indispensable for a number of companies, 60 percent of organizations 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, listed here are our main five reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore removing speculation. With more transparency from A/P automation, visibility into the system allows your A/P department to concentrate on activities and priorities that can impact your department with value add actions.
Reinforce central controls
A manual A/P method is prone to fraudulent activity. You add to the risks of human error, 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The outdated manual practice suffers from lack of awareness, wherein can result in failing to recognize a part of liabilities. This may understate expenses as well as overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each part of the process, and lets management to rapidly correct potential troubles.
Your suppliers would like a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. If you pay your customers by means of virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors click here are expensive and consume many resources to manually correct. With payment automation, you see where, when and why issues occurred. Unlike the manual process, with automation read more you’ll be able to systematically address and eliminate mistakes to enhance quality.
A/P payment automation can help you save cash, earn you extra earnings, decrease the risks of fraud, bring your operations greater transparency, meet the customers’ needs, and advance the total quality of your A/P processes.