Top Reasons Why You Should Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for numerous corporations, 60 % of corporations in the US do not know of the numerous advantages to A/P automation. Leveraging software to implement the process in manner that is seamless and easy, listed here are our best 5 reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, accordingly getting rid of speculation. With more transparency from A/P automation, visibility into the process allows your A/P department to concentrate on activities and priorities which will effect your department with value add activities.
Enhance internal controls
A manual A/P method is prone to fraud. You add to the threats of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraud.
The outdated manual practice suffers from lack of visibility, through which can result in failing to acknowledge a part of risks. This can understate operating expenses as well here as overstate income, that may trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides a total audit trail of each part of the process, here and lets management to quickly deal with possible complications.
Your vendors prefer a more effective payment process. Easier payments result in deals and cost savings for you. When you pay your customers by way of virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually solve. With payment automation, you can see where, when and why problems took place. Contrary to the manual procedure, with automation you’ll have the ability to systematically address and eliminate mistakes to enhance quality.
A/P payment automation will save you cash, earn you additional earnings, lessen the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ demands, and improve the overall quality of your A/P processes.