Top Reasons Why You Should Automate Accounts Payable
While modern technology has made Accounts Payable payment automation indispensable for a lot of companies, 60 percent of companies in the USA are not aware of the numerous benefits of A/P automation. Leveraging software applications to utilize the method in manner that is seamless and easy, the following are our top five reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore getting rid of estimation. With greater transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and priorities that can effect your department with value added activities.
Strengthen internal controls
A manual A/P process is subject to fraud. You add to the challenges of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraudulent activity.
The outdated manual click here method suffers from lack of visibility, wherein can result in neglecting to realize a segment of liabilities. This could understate expenditures thereby overstate earnings, that may trigger accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each step in the method, and allows management to promptly resolve possible troubles.
Your suppliers would like a more beneficial payment method. Easier payments result in special offers and cost savings for you. When you pay your customers via virtual card, which is a single issued credit card for a one-time use, you will earn monthly cash rebates. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Prevent error, more info delay, and unneeded costs with an automated A/P process. A/P errors can be very expensive read more and take many resources to manually remedy. With payment automation, you can see where, when and why issues happened. Unlike the manual method, with automation you’ll be in a position to methodically address and reduce issues to improve quality.
A/P payment automation can help you save cash, earn you extra cash, lessen the risks of fraud, get your operations increased transparency, fulfill the customers’ needs, and improve the overall quality of your A/P processes.