Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 % of corporations in the USA do not know of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and convenient, listed here are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, accordingly eliminating speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with activities and priorities that can effect your department with value add actions.
Reinforce internal controls
A manual A/P method is susceptible to fraudulent activity. You raise the issues of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
Increase Awareness
The outdated manual method suffers from insufficient visibility, by which can result in neglecting to acknowledge a segment of liabilities. This could understate expenses thereby overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a total audit trail of each and every step in the process, and makes it possible for management to rapidly resolve potential problems.
Satisfy Clients
Your suppliers want a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. If you pay your customers by way of virtual credit card, read more which check here is an individual issued card for a one-time use, you generate monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually handle. With payment automation, you see where, when and why mistakes happened. Contrary to the manual procedure, with automation you’ll be able to systematically address and get rid of issues to boost quality.
A/P payment automation can save you cash, earn you extra earnings, decrease the risks of fraudulent activity, provide your operations better transparency, satisfy the customers’ needs, and enhance the check here overall quality of your A/P processes.