Top Reasons Why You Should Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for a number of organizations, 60 % of businesses in the United States are not aware of the countless advantages of A/P automation. Leveraging software programs to apply the process in manner that is seamless and effortless, here are our top five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore removing uncertainty. With more transparency from A/P automation, awareness into the process allows your A/P department to give attention to activities and things which will effect your department with value add activities.
Strengthen central controls
A manual A/P method is vulnerable to fraud. You increase the issues of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraud.
The obsolete manual method suffers from lack of visibility, by which can result in neglecting to recognize get more info a segment of liabilities. This could understate operating expenses and therefore overstate earnings, that may check here trigger accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation delivers a total audit trail of each step in the process, and lets management to rapidly correct possible complications.
Your suppliers want a more effective payment method. More efficient payments result in discount rates and savings for you. When you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s equally 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.
Prevent error, delay, and needless costs with an automated A/P process. A/P errors are expensive and consume many resources to manually remedy. With payment automation, you can see where, when and why problems happened. Contrary to the manual method, with automation you’ll be able to systematically address and get rid of errors to boost quality.
A/P payment automation will save you cash, earn you extra income, lessen the risks of fraud, get your operations greater transparency, satisfy your customers’ needs, and advance the total quality of your A/P processes.