Top Reasons Why You Should Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation a standard for numerous organizations, 60 percent of companies in the USA do not know of the countless benefits of A/P automation. Leveraging software applications to apply the method in manner that is seamless and trouble-free, here are our top five reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash requirements, consequently getting rid of estimation. With better transparency from A/P automation, visibility into the process allows your A/P department to concentrate on tasks and things that will impact your department with value add activities.
Improve internal controls
A manual A/P method is susceptible to fraudulent activity. You increase the pitfalls of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraudulent activity.
The outdated manual method is affected with insufficient awareness, by which can result in failing to recognize a segment of liabilities. This could understate expenditures as well as overstate income, which could cause accounting and reporting malfunctions and ultimately fraud. A/P automation offers a total audit trail of each part of the process, and lets management to quickly correct potential problems.
Your suppliers want a more beneficial payment process. Easier payments result in special offers and savings for you. When you pay your customers by means of virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a income generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and take many resources to manually solve. With payment automation, you can see where, when and why mistakes happened. Unlike the manual procedure, with automation you’ll be in a position to methodically address and get rid of errors to enhance quality.
A/P payment automation can save you cash, earn you additional profit, decrease the risks of fraud, bring your operations greater transparency, fulfill the customers’ demands, read more and enhance the overall quality of your A/P processes.