Top Reasons to Automate Accounts Payable
Even though technology makes Accounts Payable payment automation indispensable for a lot of corporations, 60 percent of businesses in the USA do not know of the countless benefits of A/P automation. Leveraging software programs to apply the process in manner that is seamless and trouble-free, listed here are our major five reasons to automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its outstanding cash specifications, consequently eliminating guesswork. With better transparency from A/P automation, awareness into the system allows your A/P department to deal with tasks and things that will impact your department with value add activities.
Improve internal controls
A manual A/P process is susceptible to fraud. You multiply the issues of human oversight, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraud.
Enhance Awareness
The outdated manual process suffers from insufficient visibility, wherein can result in neglecting to acknowledge a part of liabilities. This can understate expenses as well as overstate revenue, which get more info could cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation produces a whole audit trail of every part of the process, and enables management to quickly resolve possible difficulties.
Please Customers
Your vendors prefer a more beneficial payment method. Easier payments result in savings and savings for you. Whenever you pay your clients by means of virtual credit card, which is a single issued credit card for a one-time use, you earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients here experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Enhance Quality
Prevent error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and use up many resources to manually solve. With payment automation, you will see where, when and why issues happened. In contrast to more info the manual procedure, with automation you’ll be able to systematically address and eliminate mistakes to increase quality.
A/P payment automation will save you cash, earn you extra revenue, reduce the risks of fraud, bring your operations greater transparency, meet the customers’ needs, and advance the total quality of your A/P processes.