Top Reasons Why You Should Automate Accounts Payable
Even though technology has made Accounts Payable payment automation simple for a number of organizations, 60 percent of companies in the United States do not know of the countless benefits of A/P automation. Leveraging software applications to utilize the process in manner that is seamless and convenient, the following are our top five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, accordingly removing guess work. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with activities and priorities that can impact your department with value add actions.
Strengthen central controls
A manual A/P method is subject to fraudulent activity. You multiply the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual method is affected with lack of visibility, by which can result in neglecting to recognize a click here part of liabilities. This may understate expenditures and therefore overstate earnings, that may cause accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every part of the method, and allows management to rapidly deal with possible problems.
Your vendors would like a more beneficial payment process. More efficient payments result in special discounts and cost savings for you. If you pay your clients by means of virtual card, which is a single issued credit card for a one-time use, you receive monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and website your A/P Department pivots to a profit generator.
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P problems can be very expensive and use up many resources to manually handle. With payment automation, you can see where, when and why issues occurred. Unlike the manual procedure, with automation you’ll be in a position to methodically address and eliminate problems to improve quality.
A/P payment automation can save you cash, earn you extra earnings, decrease the risks of fraud, get your operations better transparency, satisfy your customers’ demands, and enhance the total quality of your A/P processes.