Top Reasons Why You Should Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for numerous organizations, 60 percent of corporations in the United States do not know of the numerous benefits of A/P automation. Leveraging software applications to utilize the method in manner that is seamless and effortless, the following are our top 5 reasons to automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately 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 can impact your department with value add activities.
Reinforce internal controls
A manual A/P method is prone to fraudulent activity. You increase the threats of human oversight, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraud.
Increase Exposure
The outdated manual process suffers from insufficient visibility, in which can result in failing to realize a segment of risks. This may understate expenditures as well as overstate income, that may cause accounting and reporting irregularities and ultimately fraud. A/P automation offers a complete audit trail of every step in the process, and allows management to quickly resolve potential difficulties.
Satisfy Clients
Your vendors prefer a more beneficial payment method. Easier payments result in discounts and cost savings for you. When you pay your clients via virtual credit card, which is an individual issued card for a one-time use, you receive monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to read more a cash generator.
Improve Quality
Prevent error, delay, and needless costs with an automated A/P process. A/P problems can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why issues happened. Contrary to the manual process, with automation you’ll be able to methodically address and eliminate issues to increase quality.
A/P payment automation can save you cash, earn you additional get more info income, lessen the risks of fraud, get your operations greater transparency, satisfy the customers’ needs, and enhance the total quality of your A/P processes.