Top Reasons to Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for many organizations, 60 % of corporations in the US are unaware of the numerous advantages of A/P automation. Leveraging software applications to implement the method in manner that is seamless and easy, listed here are our top five reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, accordingly eliminating guess work. With more transparency from A/P automation, awareness into the system allows your A/P department to give attention to activities and things that will effect your department with value added actions.
Strengthen central controls
A manual A/P process is subject to fraud. You increase the threats of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
The outdated manual practice suffers from lack of awareness, in which can result in neglecting to realize a portion of liabilities. This could understate operating expenses and therefore overstate earnings, that may lead to accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every step in the process, and permits management to promptly solve potential complications.
Your suppliers prefer a more effective payment method. More efficient payments result in discounts and savings for you. When you pay your customers by means of virtual card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes are expensive and use up many resources to manually correct. With payment automation, you 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 reduce issues to boost quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, provide your operations more transparency, meet your customers’ needs, and boost the overall quality of get more info your A/P processes.