Top Reasons Why You Should Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for a number of corporations, 60 % of organizations in the USA are unaware of the countless benefits associated with A/P automation. Leveraging software programs to apply the method in manner that is seamless and convenient, listed here are our main 5 reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash requirements, consequently getting rid of guess work. With greater transparency from A/P automation, awareness into the process allows your A/P department to deal with activities and things which will impact your department with value added activities.
Reinforce internal controls
A manual A/P method is prone to fraud. You raise the challenges of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The outdated manual method is affected with lack of visibility, by which can result in neglecting to realize a portion of liabilities. This can understate expenditures as well as overstate income, which could contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation provides a whole audit trail of every part of the process, and permits management to quickly deal with possible issues.
Your vendors prefer a more effective payment process. Easier payments result in discounts and cost savings for you. If you pay your customers by means of virtual card, which is an individual issued card for a one-time use, you receive monthly cash back incentives. It’s jointly good for Accounts Payable 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 needless costs with an automated A/P process. A/P errors are expensive and use up many resources to manually fix. With payment automation, you see where, when more info and why errors took place. Contrary to the manual method, with automation you’ll have the ability to systematically address and get rid of mistakes to boost quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraud, get your operations more transparency, fulfill the customers’ demands, and boost the overall quality of your A/P processes.