Top Reasons to Automate Accounts Payable
While modern technology has made Accounts Payable payment automation simple for numerous businesses, 60 % of companies in the US are not aware of the numerous advantages of A/P automation. Leveraging software programs to implement the method in manner that is seamless and easy, the following are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its outstanding cash specifications, accordingly removing estimation. With increased transparency from A/P automation, awareness into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value add actions.
Improve central controls
A manual A/P method is susceptible to fraudulent activity. You increase the threats of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
Increase Exposure
The outdated manual process is affected with lack of visibility, wherein can result in neglecting to recognize a portion of liabilities. This may understate operating expenses thereby overstate revenue, which could result in accounting and reporting abnormalities and ultimately fraud. A/P automation produces a whole audit trail of each read more part of the process, and allows management to rapidly correct potential complications.
Please Clients
Your suppliers want a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. When more info you pay your clients with virtual card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and get more info your A/P Department pivots to a income generator.
Improve Quality
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P problems are expensive and consume many resources to manually correct. With payment automation, you see where, when and why mistakes took place. In contrast to the manual procedure, with automation you’ll be able to systematically address and eliminate issues to improve quality.
A/P payment automation can save you cash, earn you additional income, decrease the risks of fraud, get your operations more transparency, satisfy the customers’ needs, and improve the overall quality of your A/P processes.