Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for many businesses, 60 percent of organizations in the United States are unaware of the numerous benefits of A/P automation. Leveraging software to apply the method in manner that is seamless and effortless, listed here are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its pending cash requirements, consequently eliminating speculation. With increased transparency from A/P automation, visibility into the process allows your A/P department to focus on tasks and priorities that will impact your department with value added actions.
Reinforce internal controls
A manual A/P method is susceptible to fraud. You raise the risks of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
Boost Visibility
The obsolete manual practice suffers from lack of visibility, through which can result in neglecting to identify a segment of risks. This could understate operating expenses thereby overstate earnings, which can trigger accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and allows management to swiftly deal with possible troubles.
Satisfy Customers
Your vendors prefer a more efficient payment process. More efficient payments result in savings and savings for you. When you pay your clients by means of virtual card, which is a single issued credit card for a one-time use, you earn monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a income generator.
Improve Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P problems are costly and use up many resources to manually clear up. With payment automation, you can see where, when and why mistakes transpired. In contrast to the manual process, with automation you’ll have the ability read more to systematically address and reduce issues to improve quality.
A/P payment automation can save you cash, earn you extra income, decrease the risks of fraudulent activity, bring your operations greater transparency, fulfill the customers’ demands, and enrich the total quality of your A/P processes.