Top Reasons to Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation indispensable for numerous businesses, 60 % of companies in the United States are not aware of the many benefits associated with A/P automation. Leveraging software to implement the process in manner that is seamless and trouble-free, the following are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, accordingly eliminating estimation. With better transparency from A/P automation, awareness into the process allows your A/P department to deal with activities and priorities which will effect your department with value added actions.
Strengthen internal controls
A manual A/P process is susceptible to fraud. You raise the pitfalls of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraud.
Optimize Visibility
The outdated manual practice is affected with insufficient awareness, wherein can result in neglecting to realize a part of risks. This can understate expenditures thereby overstate income, that may result in accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides a complete audit trail of each step in the method, and makes it possible for management to swiftly handle potential problems.
Satisfy Clients
Your suppliers prefer a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. Whenever 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 collectively beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P problems are expensive and use up many resources to manually clear up. With payment automation, you can see where, when and why problems took place. In contrast to the manual click here method, with automation you’ll be in a position to methodically address and get more info rid of mistakes to enhance quality.
A/P payment automation can help you save here cash, earn you extra income, reduce the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ demands, and advance the overall quality of your A/P processes.