Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation simple for numerous corporations, 60 % of organizations in the USA are unaware of the countless advantages of A/P automation. Leveraging software applications to apply the method in manner that is seamless and easy, listed here are our top five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore eliminating speculation. With better transparency from A/P automation, awareness into the process allows your A/P department to deal with activities and priorities that will impact your department with value add actions.
Reinforce central controls
A manual A/P method is subject to fraud. You raise the challenges of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The obsolete manual practice is affected with insufficient awareness, in which can result in failing to recognize a portion of liabilities. This can understate expenses and therefore overstate income, that may lead to accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers read more an entire audit trail of each and every part of the process, and permits management to rapidly fix potential issues.
Your suppliers would like a more effective payment method. Easier payments result in savings and cost savings for you. If you pay your clients by means of virtual card, which is a single issued credit card for a one-time use, you generate monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors can be very expensive and consume many resources to manually remedy. With payment automation, you will see where, when and why errors took place. Contrary to the manual procedure, with automation you’ll be able to systematically address and reduce errors to boost quality.
A/P payment automation can help you save cash, earn you additional income, lessen the risks of fraudulent activity, get your operations better transparency, satisfy the customers’ demands, and boost the overall quality of your A/P processes.