Top Reasons to Automate Accounts Payable
Despite the fact that modern technology has made Accounts Payable payment automation indispensable for a lot of companies, 60 % of companies in the United States are unaware of the many advantages to A/P automation. Leveraging software programs to implement the process in manner that is seamless and convenient, here are our best five reasons why you should automate.
Accounts Payable automation allows A/P to accurately project its pending cash specifications, consequently eliminating estimation. With greater transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and priorities which will impact your department with value add activities.
Strengthen internal controls
A manual A/P process is susceptible to fraud. You increase the challenges of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
The obsolete manual practice is affected with lack of visibility, through which can result in failing to realize a part of liabilities. This may understate expenditures and therefore overstate revenue, which could trigger accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation offers a complete audit trail of each step in the process, and allows website management to swiftly solve possible problems.
Your vendors would like a more efficient payment process. Easier payments result in savings and savings for you. Whenever you pay your clients with virtual card, which is a single issued card for a one-time use, you earn monthly cash back incentives. It’s mutually beneficial for Accounts website Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are costly and consume many resources to manually fix. With payment automation, you will see where, when and why mistakes happened. Unlike the manual method, with automation you’ll have the ability to systematically address and get more info eliminate errors to boost quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraud, get your operations increased transparency, satisfy the customers’ needs, and enhance the overall quality of your A/P processes.