Top Reasons Why You Should Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation indispensable for many organizations, 60 percent of businesses in the United States are not aware of the numerous advantages to A/P automation. Leveraging software to utilize the process in manner that is seamless and effortless, here are our major five reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash specifications, consequently getting rid of guess work. With greater transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities which will effect your department with value add activities.
Enhance internal controls
A manual A/P process is vulnerable to fraudulent activity. You increase the threats of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraudulent activity.
The outdated manual process suffers from lack of visibility, in which can result in neglecting to recognize a portion of liabilities. This can understate expenses and therefore overstate revenue, that may result in accounting and reporting irregularities and ultimately fraudulent activity. A/P automation produces an entire audit trail of each read more and every step in the process, and allows management to quickly solve potential difficulties.
Your vendors want a more efficient payment process. Easier payments result in discount rates and cost savings for you. Whenever you pay your clients by means of virtual credit card, which is a single issued card for a one-time use, you earn monthly cash rebates. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and avoidable costs with an automated A/P process. A/P problems are costly and consume click here many resources to manually solve. With payment automation, you can see where, when and why problems happened. Contrary to the manual procedure, with automation you’ll be able to systematically address and reduce errors to improve quality.
A/P payment automation can save you cash, earn you additional revenue, reduce the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ needs, and advance the total quality of your A/P processes.