Top Reasons to Automate Accounts Payable
Even though modern technology has made Accounts Payable payment automation simple for a lot of businesses, 60 % of corporations in the US do not know of the many benefits of A/P automation. Leveraging software applications to apply the method in manner that is seamless and trouble-free, here are our major five reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its outstanding cash specifications, consequently eliminating estimation. With increased transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that can impact your department with value add actions.
Improve internal controls
A manual A/P method is susceptible to fraudulent activity. You multiply the challenges of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
Boost Exposure
The outdated manual practice suffers from insufficient visibility, in which can result in neglecting to recognize a website segment of liabilities. This could understate operating expenses thereby overstate revenue, which can contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to rapidly resolve potential problems.
Satisfy Customers
Your vendors prefer a more efficient payment method. Easier payments result in special offers and savings for you. Whenever you pay your clients with virtual card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and here Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a profit generator.
Enhance Quality
Prevent error, delay, and needless costs with an automated A/P process. A/P mistakes can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why faults transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra revenue, reduce the risks of fraudulent activity, provide your operations better transparency, satisfy the customers’ demands, and boost the overall quality of your A/P processes.