Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for a lot of companies, 60 percent of corporations in the US are unaware of the numerous advantages of A/P automation. Leveraging software applications to implement the method in manner that is seamless and easy, listed here are our top five reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, therefore removing estimation. With better transparency from A/P automation, visibility into the system allows your A/P department to focus on activities and things that will effect your department with value add activities.
Reinforce internal controls
A manual A/P method is prone to fraud. You raise the pitfalls of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The obsolete manual practice suffers from insufficient awareness, wherein can result in failing to acknowledge a portion of risks. This may understate expenses thereby overstate revenue, which can cause accounting and reporting abnormalities and ultimately get more info fraud. A/P automation provides a whole audit trail of each and every step in the process, and lets management to promptly solve potential complications.
Your suppliers prefer a more efficient payment method. More efficient payments result in special offers and cost savings for you. When you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you receive monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and needless costs with an automated A/P process. A/P errors are expensive and use up many resources to manually correct. With payment automation, you will see where, when and why errors occurred. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and get rid of mistakes to improve quality.
A/P payment automation can save you cash, earn you additional profit, decrease the risks of fraud, bring your operations better transparency, fulfill your customers’ needs, and advance the total quality of your A/P processes.