Top Reasons to Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation a standard for a number of businesses, 60 percent of companies in the USA do not know of the countless benefits associated with A/P automation. Leveraging software programs to implement the method in manner that is seamless and easy, the following are our top 5 reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore getting rid of speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with tasks and priorities that can effect your department with value added actions.
Reinforce central controls
A manual A/P method is prone to fraud. You multiply the challenges of human error, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The outdated manual practice suffers from lack of visibility, by which can result in neglecting to realize a portion of risks. This can understate expenditures as well as overstate income, which can contribute to accounting and reporting irregularities and ultimately fraud. A/P automation provides a complete audit get more info trail of each part of the method, and permits management to promptly fix possible issues.
Your vendors would like a more beneficial payment process. More efficient payments result in special discounts and cost savings for you. Whenever you pay your customers by means of virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P errors may be very costly and use up many resources to manually resolve. With payment automation, you see where, when and why errors took place. Unlike the manual method, with automation you’ll be more info able to methodically address and eliminate issues to enhance quality.
A/P payment automation will save you cash, earn you additional cash, lessen the risks of fraudulent activity, get your operations increased transparency, meet the customers’ needs, and enhance the overall quality of your A/P processes.