Top Reasons Why You Should Automate Accounts Payable
Despite the fact that modern technology makes Accounts Payable payment automation indispensable for a lot of businesses, 60 % of companies in the USA do not know of the countless advantages to A/P automation. Leveraging software applications to utilize the process in manner that is seamless and easy, the following are our best 5 reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash specifications, therefore eliminating guess work. With better transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and things which will impact your department with value added actions.
Improve internal controls
A manual A/P method is vulnerable to fraudulent activity. You raise the challenges of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
Enhance Awareness
The obsolete manual practice is affected with lack of visibility, through which can result in failing to acknowledge a portion of liabilities. This could understate operating expenses as well as overstate income, which could contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation produces a total audit trail of every step in the process, and allows management to rapidly click here handle possible issues.
Please Clients
Your suppliers would like a more beneficial payment process. Easier payments result in special offers and cost savings for you. If you pay your clients by way of virtual card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, read more seamless payments and your A/P Department pivots to a cash generator.
Improve Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P mistakes can be very expensive and consume many resources to manually handle. With payment automation, you can see where, when and why errors transpired. In contrast to the manual process, with automation you’ll be in a position to methodically address and reduce problems to enhance quality.
A/P payment automation will save you cash, earn you extra revenue, lessen the risks of fraud, get your operations better transparency, fulfill the customers’ needs, and enrich the total quality of your A/P processes.