Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation simple for many companies, 60 percent of corporations in the USA do not know of the numerous advantages of A/P automation. Leveraging software applications to implement the process in manner that is seamless and convenient, listed here are our top five reasons to automate.
Accounts Payable automation enables A/P to accurately project its pending cash specifications, accordingly eliminating guess work. With better transparency from A/P automation, visibility into the system allows your A/P department to focus on tasks and priorities which will impact your department with value added actions.
Reinforce internal controls
A manual A/P method is vulnerable to fraud. You raise the pitfalls 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 fraudulent activity.
The outdated manual practice is affected with lack of visibility, wherein can result in neglecting to identify a part of liabilities. This may understate expenses as well as overstate income, which could contribute to accounting and reporting malfunctions and ultimately fraud. A/P automation provides a whole audit trail of each and every step in the process, and allows management to quickly get more info correct potential complications.
Your vendors prefer a more efficient payment method. More efficient payments result in special discounts and savings for you. If you pay your customers with virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes may be very costly and use up many resources to manually resolve. With website payment automation, you can see where, when and why errors occurred. Contrary to the manual method, with automation you’ll have the ability to systematically address and reduce mistakes to increase quality.
A/P payment automation can save you cash, earn you additional earnings, reduce the risks of fraud, provide your operations increased transparency, satisfy your customers’ needs, and advance the overall quality of your A/P processes.