Top Reasons Why You Should Automate Accounts Payable
Despite the fact that modern technology makes Accounts Payable payment automation a standard for a number of businesses, 60 % of organizations in the United States are not aware of the many benefits of A/P automation. Leveraging software applications to apply the method in manner that is seamless and easy, here are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its outstanding cash requirements, accordingly getting rid of estimation. With more transparency from A/P automation, awareness into the process allows your A/P department to give attention to activities and priorities that will effect your department with value add actions.
Reinforce internal controls
A manual A/P method is susceptible to fraudulent activity. You multiply the issues of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
Increase Exposure
The obsolete manual method suffers from lack of visibility, in which can result in neglecting to realize a part of liabilities. This can understate operating expenses thereby overstate revenue, which can lead to accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each step in the process, and makes it possible for management to rapidly handle possible troubles.
Please Clients
Your vendors would like a more efficient payment method. More efficient payments 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 will earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P read more Department pivots to a profit generator.
Enhance Quality
Prevent error, delay, and pointless costs check here with an automated A/P process. A/P problems are costly and consume many resources to manually correct. With payment automation, you see where, when and why issues occurred. Unlike the manual procedure, with automation you’ll be able to methodically address and eliminate errors to increase quality.
A/P payment automation can help you save cash, earn you additional profit, decrease the risks of fraud, provide your operations better transparency, satisfy the customers’ demands, and boost the overall quality of your A/P processes.