Top Reasons Why You Should Automate Accounts Payable
Even though tech makes Accounts Payable payment automation a standard for a number of organizations, 60 percent of companies in the USA are unaware of the many benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and easy, the following are our major five reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, consequently eliminating estimation. With increased transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and priorities that will impact your department with value add actions.
Enhance central controls
A manual A/P process is at risk of fraud. You multiply the challenges of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The obsolete manual method suffers from insufficient visibility, in which can result in click here failing to identify a portion of risks. This can understate operating expenses thereby overstate income, that may cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit check here trail of get more info each part of the process, and makes it possible for management to swiftly solve possible difficulties.
Your vendors prefer a more effective payment process. More efficient payments result in discounts and savings for you. If you pay your customers by way of virtual credit card, which is a single issued card for a one-time use, you will earn monthly cash rebates. 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 profit generator.
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 fix. With payment automation, you will see where, when and why issues occurred. In contrast to the manual method, with automation you’ll be in a position to methodically address and eliminate mistakes to enhance quality.
A/P payment automation can help you save cash, earn you additional cash, reduce the risks of fraud, bring your operations greater transparency, meet your customers’ demands, and enrich the overall quality of your A/P processes.