Top Reasons to Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation simple for a lot of companies, 60 percent of companies in the US are not aware of the countless benefits associated with A/P automation. Leveraging software applications to utilize the method in manner that is seamless and easy, the following are our major five reasons to automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash specifications, consequently removing speculation. With more transparency from A/P automation, awareness into the system allows your A/P department to deal with activities and priorities that can impact your department with value add actions.
Improve internal controls
A manual A/P method is at risk of fraud. You increase the pitfalls of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraud.
The obsolete manual method is affected with lack of awareness, through which can result in neglecting to realize a portion of risks. This can understate expenditures and therefore overstate earnings, that may cause accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to quickly deal with potential troubles.
Your suppliers prefer a more effective payment process. More efficient payments result in discounts and cost savings for you. Whenever you pay your customers via virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined 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 remedy. With payment automation, you see where, when and why mistakes happened. In contrast to the manual method, with automation you’ll read more have the ability to methodically address and reduce issues to improve quality.
A/P payment automation can accounts payable automation save you cash, earn you additional income, lessen the risks of fraud, provide your operations better transparency, satisfy the customers’ needs, and boost the overall quality of your A/P processes.