Top Reasons Why You Should Automate Accounts Payable
Even though tech has made Accounts Payable payment automation indispensable for a lot of corporations, 60 percent of corporations in the US are not aware of the many benefits associated with A/P automation. Leveraging software programs to apply the process in manner that is seamless and convenient, here are our major five reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, accordingly removing guesswork. With increased transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and priorities which will effect your department with value added activities.
Strengthen central controls
A manual A/P method is at risk of fraudulent activity. You increase the challenges of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
The outdated manual method is affected with lack of awareness, wherein can result in neglecting to realize a segment of risks. This can understate expenditures as well as overstate earnings, which can result in accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation produces a whole audit trail more info of each step in the process, and lets management to rapidly deal with potential troubles.
Your suppliers want a more effective payment process. More efficient payments result in special offers and cost savings for you. When you pay your customers by way of virtual card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. 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 revenue generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P errors may be very costly and consume many resources to manually fix. With payment automation, you see where, when and why faults transpired. Contrary to the manual method, with automation you’ll be able to methodically address and get rid of errors to improve quality.
A/P payment automation will save you cash, earn you additional earnings, reduce the risks of fraudulent activity, bring your operations increased transparency, meet your customers’ needs, and advance the total quality of your A/P processes.