Top Reasons Why You Should Automate Accounts Payable
Although tech has made Accounts Payable payment automation indispensable for a lot of businesses, 60 % of companies in the USA are unaware of the many advantages of A/P automation. Leveraging software programs to implement the method in manner that is seamless and trouble-free, here are our top five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore removing guesswork. With greater transparency from A/P automation, visibility into the system allows your A/P department to give attention to tasks and things which will impact your department with value add actions.
Enhance internal controls
A manual A/P method is vulnerable to fraud. You multiply the pitfalls of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
Capitalize on Visibility
The obsolete manual method suffers from lack of visibility, by website which can result in neglecting to recognize a portion of risks. This may understate operating expenses and therefore overstate income, which can trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a total audit trail of each and every step in the method, and lets management to rapidly resolve potential complications.
Your vendors prefer a more effective payment process. Easier payments result in savings and savings for you. When you pay your customers with virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable check here and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually resolve. With payment automation, you can see where, when and why problems took place. In contrast to the manual method, with automation you’ll be in a position to methodically address and reduce issues to boost quality.
A/P payment automation will save you cash, earn you additional cash, lessen the risks of fraudulent activity, provide your operations more transparency, fulfill your customers’ demands, and enrich the overall quality of your A/P processes.