Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 percent of organizations in the US do not know of the many benefits of A/P automation. Leveraging software applications to implement the process in manner that is seamless and easy, listed here are our top 5 reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore removing uncertainty. With increased transparency from A/P automation, visibility into the system allows your A/P department to give attention to tasks and priorities which will effect your department with value add activities.
Enhance internal controls
A manual A/P method is at risk of fraudulent activity. You multiply the risks of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraud.
The outdated manual process suffers from insufficient awareness, by which can result in failing to recognize a portion of liabilities. This can get more info understate expenses and therefore overstate revenue, that may result in accounting and reporting irregularities and ultimately fraudulent activity. A/P automation offers an entire audit trail of each and every part of the process, and enables management to rapidly fix potential problems.
Your suppliers click here prefer a more effective payment method. More efficient payments result in special offers 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 will earn monthly cash rebates. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a profit generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually correct. With payment automation, you can see where, when and why problems transpired. Unlike the manual process, with automation you’ll have the ability to methodically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraud, bring your operations greater transparency, satisfy the customers’ demands, and advance the total quality of your A/P processes.