Top Reasons to Automate Accounts Payable
While modern technology has made Accounts Payable payment automation simple for many businesses, 60 % of companies in the USA do not know of the numerous advantages to A/P automation. Leveraging software applications to apply the process in manner that is seamless and convenient, listed here are our top five reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, therefore removing estimation. With better transparency from A/P automation, awareness into the process allows your A/P department to give attention to tasks and things that will impact your department with value add actions.
Improve internal controls
A manual A/P process is susceptible to fraud. You raise the pitfalls of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
The obsolete manual process is affected with lack of awareness, wherein can result in failing to identify a portion of liabilities. This could understate operating expenses and therefore overstate revenue, which can result in accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every step in the method, and allows management to swiftly solve possible issues.
Your suppliers prefer a more effective payment process. More efficient payments more info result in discounts and savings for you. Whenever you pay your clients with virtual card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for click here Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and needless costs with an automated A/P process. A/P mistakes can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why faults transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra revenue, reduce the risks of fraudulent activity, provide your operations better transparency, fulfill the customers’ demands, and enrich the total quality of your A/P processes.