Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for a lot of businesses, 60 percent of organizations in the USA are unaware of the numerous benefits associated with A/P automation. Leveraging software to utilize the process in manner that is seamless and easy, here are our best 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, therefore getting rid of uncertainty. With more transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities that can effect your department with value add actions.
Reinforce internal controls
A manual A/P method is subject to fraudulent activity. You multiply the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual practice suffers from insufficient visibility, through which can result in neglecting to recognize a portion of risks. This can understate expenditures and therefore overstate earnings, that may cause accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to rapidly correct potential troubles.
Your suppliers would like a more beneficial payment method. More efficient payments result in special discounts and savings for you. If you pay your clients via virtual card, which is a single issued credit card for a one-time use, you will earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P mistakes are expensive and take many resources to manually remedy. With payment automation, you can see where, when and why issues happened. In contrast to the manual method, with automation you’ll be in a position to systematically address and eliminate issues to increase quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraud, provide your more info operations here more transparency, fulfill your customers’ demands, and boost the total quality of your A/P processes.