Top Reasons to Automate Accounts Payable
Although technology makes Accounts Payable payment automation indispensable for a lot of companies, 60 % of companies in the United States are unaware of the many advantages to A/P automation. Leveraging software applications to apply the process in manner that is seamless and convenient, here are our main five reasons to automate.
Accounts Payable automation lets A/P to correctly project its pending cash requirements, therefore removing speculation. With greater transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and things that will effect your department with value added actions.
Reinforce internal controls
A manual A/P process is susceptible to fraud. You multiply the issues of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraudulent activity.
The obsolete manual method suffers from lack of awareness, through which can read more result in failing to realize a segment of liabilities. This could understate expenditures thereby overstate revenue, that may lead to accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit trail of every step in the process, and lets management to quickly resolve possible difficulties.
Your suppliers would like a more efficient payment process. Easier payments result in discount rates and cost savings for you. When you pay your customers by means of virtual card, which is a single issued credit card for a one-time use, you will earn monthly cash back incentives. It’s jointly good 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 needless costs with an automated A/P process. A/P mistakes may be very costly and consume many resources to manually remedy. With payment automation, you see where, when and why faults took place. Contrary to the manual method, with automation you’ll be able to read more methodically address and get rid of problems to improve quality.
A/P payment automation can save you cash, earn you additional cash, lessen the risks of fraudulent activity, get your operations increased transparency, meet the customers’ demands, and boost the total quality of your A/P processes.