Top Reasons Why You Should Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for a lot of organizations, 60 % of companies in the United States are not aware of the many benefits associated with A/P automation. Leveraging software applications to apply the method in manner that is seamless and easy, listed here are our major five reasons to automate.
Accounts Payable automation lets A/P to accurately project its pending cash requirements, accordingly eliminating uncertainty. With better transparency from A/P automation, visibility into the process allows your A/P department to focus on tasks and priorities that will impact your department with value added activities.
Reinforce internal controls
A manual A/P method is subject to fraudulent activity. You multiply the pitfalls of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
The outdated manual method is affected with lack of visibility, in which can result in neglecting to recognize a part of liabilities. This could understate operating expenses and therefore overstate earnings, that may contribute to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation offers a whole audit trail of each and every step in the method, and enables management to quickly resolve potential difficulties.
Your vendors prefer a more efficient payment method. Easier payments result in special offers and savings for you. When you pay your clients with virtual card, which is a single issued credit card for a one-time use, you receive monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why faults took place. In contrast to the manual method, with automation you’ll be able to methodically address and get rid more info of errors to enhance quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, bring your operations more transparency, meet the customers’ demands, and enhance get more info the overall quality of your A/P processes.