Top Reasons to Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for numerous businesses, 60 percent of companies in the USA are unaware of the countless benefits associated with A/P automation. Leveraging software programs to utilize the method in manner that is seamless and trouble-free, here are our major 5 reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, accordingly getting rid of speculation. With better transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and things that will impact your department with value added actions.
Improve central controls
A manual A/P method is vulnerable to fraud. You multiply the threats of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual method suffers from insufficient awareness, by which can result in failing to recognize a portion of liabilities. This could understate operating expenses and therefore overstate income, which can result in accounting and reporting irregularities and ultimately fraudulent activity. A/P automation produces an entire audit trail of each and every step in the method, and allows management to promptly correct possible difficulties.
Your suppliers prefer a more effective payment method. Easier payments result in special discounts and cost savings for you. If you pay your customers by means of virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash back incentives. It’s collectively good for here Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent check here error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and use up many resources to manually correct. With payment automation, you see where, when and why mistakes took place. In contrast to the manual procedure, with automation you’ll be able to systematically address and eliminate errors to enhance quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraud, bring your operations greater transparency, satisfy the customers’ needs, and boost the total quality of your A/P processes.