Top Reasons to Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation a standard for a number of organizations, 60 percent of companies in the USA are unaware of the numerous benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and effortless, listed here are our top five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash requirements, consequently removing estimation. With increased transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and things which will impact your department with value added actions.
Reinforce internal controls
A manual A/P method is susceptible to fraudulent activity. You raise the issues of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Maximize Visibility
The obsolete manual method suffers from insufficient visibility, through which can result in neglecting to acknowledge a segment website of liabilities. This could understate expenses as well as overstate income, that may cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of every step in the method, and permits management to promptly handle potential difficulties.
Please Customers
Your suppliers 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 a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and unneeded costs with an automated A/P process. A/P problems are costly and consume many resources to manually correct. With payment automation, you see where, when and why errors happened. In contrast to the manual method, with automation you’ll have the ability to methodically address and get rid of problems to boost quality.
A/P payment automation will save you cash, earn you additional cash, lessen the risks of fraudulent activity, provide your operations better transparency, satisfy the customers’ demands, and boost the overall quality of your A/P processes.