Top Reasons to Automate Accounts Payable
Even though technology has made Accounts Payable payment automation indispensable for a lot of organizations, 60 % of organizations in the United States are unaware of the numerous advantages of A/P automation. Leveraging software applications to implement the process in manner that is seamless and easy, here are our top five reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, consequently getting rid of speculation. With better transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and priorities which will impact your department with value add activities.
Reinforce central controls
A manual A/P method is at risk of fraudulent activity. You add to the pitfalls of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
The obsolete manual practice suffers from insufficient awareness, wherein can result in neglecting to recognize a portion of liabilities. This could understate operating expenses and therefore overstate income, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation offers a complete audit trail of each part of the process, and enables management to swiftly deal with possible troubles.
Your vendors want a more beneficial payment method. More efficient payments result in discounts and savings for you. If you pay your customers with virtual card, which is an individual issued credit card for a one-time use, you earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P get more info errors are expensive and take read more many resources to manually solve. With payment automation, you can see where, when and why errors transpired. In contrast to the manual process, with automation you’ll have the ability to systematically address and eliminate mistakes to boost quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraud, get your operations increased transparency, meet the customers’ needs, and enhance the total quality of your A/P processes.