Top Reasons to Automate Accounts Payable
Despite the fact that technology makes Accounts Payable payment automation simple for numerous corporations, 60 % of organizations in the US do not know of the many benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and effortless, here are our best five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, accordingly removing guesswork. With better transparency from A/P automation, awareness into the process allows your A/P department to deal with activities and priorities which will effect your department with value added activities.
Reinforce internal controls
A manual A/P method is at risk of fraud. You multiply the challenges of human oversight, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraudulent activity.
The obsolete manual method suffers from lack of awareness, through which can result in neglecting to acknowledge a segment of risks. This could understate expenses as well as overstate earnings, that may lead to accounting and reporting abnormalities and ultimately fraud. A/P automation delivers an entire audit trail of each step in here the method, and permits management to rapidly solve possible complications.
Your suppliers want a more effective payment process. More efficient payments result in discount rates and cost savings for you. If you pay your clients via virtual card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors can be very expensive and use up many resources to manually correct. With payment automation, you see where, when and why issues transpired. Contrary to the manual method, with automation you’ll have the ability to systematically address and read more reduce mistakes to improve quality.
A/P payment automation will save you cash, earn you extra cash, lessen the risks of fraud, provide your operations increased transparency, satisfy your customers’ needs, and boost the total quality of your A/P processes.