Top Reasons to Automate Accounts Payable
Even though modern technology makes Accounts Payable payment automation indispensable for numerous organizations, 60 percent of organizations in the United States do not know of the countless advantages to A/P automation. Leveraging software applications to utilize the method in manner that is seamless and trouble-free, listed here are our top 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its pending cash requirements, therefore getting rid of guess work. With more transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and priorities which will effect your department with value added actions.
Reinforce internal controls
A manual A/P method is prone to fraud. You multiply the challenges of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
Boost Exposure
The outdated manual practice is affected with insufficient awareness, wherein can result in failing to realize a portion of liabilities. This could understate operating expenses thereby overstate earnings, that may lead to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation produces a complete audit trail of each step in the process, and enables management to promptly fix possible problems.
Satisfy Customers
Your vendors prefer read more a more beneficial payment method. Easier payments result in special offers and savings for you. Whenever you pay your clients by means of virtual credit card, which is a single issued credit card for a one-time use, you receive monthly cash back incentives. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Improve Quality
Prevent error, delay, and avoidable costs with an automated A/P process. A/P mistakes can be very expensive and consume many resources to manually handle. With payment automation, you can see where, when and why mistakes happened. Unlike the manual procedure, with automation you’ll have the ability to systematically address and get rid of mistakes to improve quality.
A/P payment automation will read more save you cash, earn you extra income, reduce the risks of fraudulent activity, bring your operations better transparency, fulfill the customers’ demands, and enhance the overall quality of your A/P processes.