Top Reasons to Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for many organizations, 60 percent of corporations in the USA are not aware of the numerous advantages of A/P automation. Leveraging software programs to utilize the method in manner that is seamless and trouble-free, here are our major five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore eliminating speculation. With more transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that will impact your department with value added activities.
Enhance internal controls
A manual A/P method is at risk of fraud. You add to the issues 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 deter fraudulent activity.
The outdated manual method suffers from insufficient visibility, through which can result in failing to identify a segment of risks. This may understate expenses as well as overstate revenue, which can cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a total audit trail of every part of the method, and permits management to promptly deal with possible difficulties.
Your suppliers would like a more effective payment method. Easier payments result in special offers and savings for you. If you pay your customers via virtual credit card, which is an individual issued card for a one-time use, you earn monthly cash back incentives. It’s mutually good for Accounts Payable ap automation and Accounts Receivable. Your clients benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and needless costs with an automated A/P process. A/P mistakes are costly and use up many resources to manually fix. With payment automation, you see where, when and why mistakes took place. Contrary to the manual procedure, with automation you’ll be able to systematically address and get rid of problems to boost quality.
A/P payment automation can save you cash, earn you extra earnings, decrease the risks of fraud, get your operations greater transparency, fulfill your customers’ demands, and boost the overall quality of your A/P processes.