Top Reasons Why You Should Automate Accounts Payable
While technology has made Accounts Payable payment automation simple for many businesses, 60 percent of companies in the USA do not know of the many benefits associated with A/P automation. Leveraging software to implement the method in manner that is seamless and effortless, the following are our major five reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its pending cash requirements, therefore eliminating estimation. With increased transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Strengthen internal controls
A manual A/P method is subject to fraud. You add to the risks of human error, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
The obsolete manual practice is affected with insufficient visibility, in which can result in failing to identify a segment of liabilities. This may understate expenditures thereby overstate income, that may cause accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation offers a whole audit trail of every part of the process, and makes it possible for management to quickly fix potential issues.
Your vendors prefer a more efficient payment process. More efficient payments result in special offers and savings for you. If you pay your clients by means of virtual credit card, which is an individual issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P mistakes can click here be very expensive and use up many resources to manually remedy. With payment automation, you can see where, when and why errors occurred. Contrary to the manual method, with automation you’ll have the ability to methodically address and get rid of errors to enhance click here quality.
A/P payment automation can save you cash, earn you extra profit, lessen the risks of fraudulent activity, bring your operations more transparency, meet the customers’ needs, and boost the total quality of your A/P processes.