Top Reasons Why You Should Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for numerous corporations, 60 % of businesses in the US are not aware of the many advantages of A/P automation. Leveraging software applications to utilize the method in manner that is seamless and trouble-free, here are our major 5 reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash requirements, consequently getting rid of guesswork. With increased transparency from A/P automation, visibility into the system allows your A/P department to focus on tasks and priorities which will impact your department with value add actions.
Strengthen central controls
A manual A/P process is subject to fraudulent activity. You increase the pitfalls of human oversight, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraudulent activity.
Increase Awareness
The obsolete manual method is affected with lack of visibility, in which can result in neglecting to recognize a segment of liabilities. This may understate operating expenses and therefore overstate earnings, that may lead to accounting and reporting malfunctions and ultimately fraud. A/P automation provides a total audit trail of each and every part of the process, and makes it possible for management to quickly correct potential difficulties.
Please Clients
Your vendors prefer a more effective payment process. Easier payments result in discounts and savings for you. Whenever you pay your clients with virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Enhance Quality
Avoid error, delay, and needless costs with an automated A/P process. A/P errors may be click here very costly and use up many resources to manually remedy. With payment automation, you will see where, when and why mistakes occurred. In contrast to the manual process, with automation you’ll have the ability to systematically address and eliminate issues to increase quality.
A/P payment automation can help you save cash, earn you additional cash, decrease the risks of fraud, get your operations better transparency, fulfill the customers’ demands, and improve the total quality of your A/P processes.