Top Reasons to Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation indispensable for a lot of companies, 60 percent of companies in the United States are not aware of the many advantages of A/P automation. Leveraging software to utilize the process in manner that is seamless and trouble-free, listed here are our best five reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash specifications, consequently getting rid of estimation. With increased transparency from A/P automation, awareness into the process allows your A/P department to give attention to activities and priorities that will impact your department with value added activities.
Reinforce internal controls
A manual A/P method is at risk of fraud. You raise the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
Capitalize on Visibility
The obsolete manual practice suffers from insufficient awareness, wherein can result in failing to acknowledge a segment of risks. This can understate expenditures as well as overstate income, which could cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation check here produces a total audit trail of each step in the method, and allows management to rapidly correct potential difficulties.
Please Clients
Your vendors would like a more efficient payment process. Easier payments result in deals and cost savings for you. If you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P errors are expensive and consume many resources to manually handle. With payment automation, you will see where, when and why faults took place. In contrast to the manual method, with automation you’ll have the ability to systematically address and eliminate errors to improve quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraud, bring your operations greater transparency, satisfy your customers’ demands, and improve the total quality of your A/P processes.