Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for many companies, 60 percent of organizations in the US do not know of the countless advantages of A/P automation. Leveraging software programs to utilize the method in manner that is seamless and convenient, the following 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 removing estimation. With more transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and priorities that can effect your department with value add activities.
Strengthen central controls
A manual A/P method is subject to fraudulent activity. You raise the issues of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
Increase Awareness
The outdated manual practice is affected with lack of awareness, through which can result in neglecting to acknowledge a segment of liabilities. This may understate expenditures and therefore overstate revenue, which can here result in accounting and reporting abnormalities website and ultimately fraud. A/P automation produces a total audit trail of every part of the method, and lets management to rapidly resolve possible issues.
Please Customers
Your vendors would like a more effective payment process. More efficient payments result in special discounts and cost savings for you. If you pay your get more info customers by way of virtual card, which is a single issued credit card for a one-time use, you earn monthly cash rebates. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a income generator.
Improve Quality
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P problems are costly and use up many resources to manually clear up. With payment automation, you can see where, when and why problems transpired. Unlike the manual process, with automation you’ll have the ability to methodically address and reduce issues to improve quality.
A/P payment automation can save you cash, earn you extra earnings, lessen the risks of fraudulent activity, provide your operations better transparency, meet the customers’ needs, and improve the overall quality of your A/P processes.