Top Reasons to Automate Accounts Payable
While technology makes Accounts Payable payment automation simple for a lot of corporations, 60 % of organizations in the USA are not aware of the countless advantages to A/P automation. Leveraging software programs to apply the process in manner that is seamless and easy, here are our major five reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash specifications, accordingly removing guesswork. With greater transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and things that will effect your department with value add actions.
Improve central controls
A manual A/P process is vulnerable to fraudulent activity. You multiply the pitfalls of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Increase Awareness
The obsolete manual process suffers from lack of awareness, in which can result in neglecting to acknowledge a portion of liabilities. This may understate expenses thereby overstate revenue, that may lead to accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation offers a whole audit trail of here each and every part of the process, and makes it possible for management to promptly handle potential troubles.
Please Clients
Your vendors would like a more efficient payment method. More efficient payments result in discounts and savings for you. When you pay your customers by means of virtual card, which is a single issued card for a one-time use, you generate monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Enhance Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems may be very costly and take many resources to manually resolve. With payment automation, you can see where, when and why errors occurred. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and eliminate errors to improve quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraud, provide your operations better transparency, fulfill your customers’ needs, and enhance the overall quality of your A/P processes.