Top Reasons Why You Should Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for a lot of companies, 60 % of corporations in the US are unaware of the countless advantages to A/P automation. Leveraging software applications to apply the method in manner that is seamless and convenient, here are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently removing guess work. With greater transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and things which will effect your department with value add actions.
Strengthen internal controls
A manual A/P method is vulnerable to fraudulent activity. You multiply the challenges of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraudulent activity.
Improve Visibility
The obsolete manual method suffers from insufficient visibility, wherein can result in neglecting to recognize a part of liabilities. This could understate expenditures and therefore overstate revenue, which could trigger accounting and reporting abnormalities and ultimately fraud. A/P automation offers a get more info total audit trail of each step in the process, and permits management to quickly fix potential troubles.
Please Clients
Your suppliers want a more beneficial payment process. Easier payments result in special offers and savings for you. If you pay your customers by means of virtual credit card, which is a single issued card for a one-time use, you earn monthly cash back incentives. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Improve Quality
Avoid error, read more delay, and unneeded costs with an automated A/P process. A/P errors are expensive and use up many resources to manually fix. With payment automation, you see where, when and why mistakes transpired. Contrary to the manual method, with automation you’ll be able to methodically address and get rid of mistakes to increase quality.
A/P payment automation can help you save cash, earn you extra income, decrease the risks of fraud, get your operations greater transparency, meet the customers’ demands, and boost the total quality of your A/P processes.