Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for many companies, 60 % of organizations in the US do not know of the numerous advantages to A/P automation. Leveraging software applications to apply the process in manner that is seamless and effortless, the following are our best five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its pending cash requirements, therefore eliminating guess work. With greater transparency from A/P automation, visibility into the system allows your A/P department to focus on tasks and priorities that will impact your department with value added activities.
Enhance internal controls
A manual A/P process is at risk of fraud. You raise the pitfalls of human oversight, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraudulent activity.
Enhance Exposure
The obsolete manual process suffers from lack of visibility, by which can result in neglecting to realize a portion of liabilities. This may understate expenditures thereby overstate earnings, that may website lead to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each part of the process, and allows management to promptly correct possible complications.
Please Customers
Your suppliers would like a more beneficial payment method. More efficient payments result in special discounts read more and savings for you. If you pay your customers by means of virtual card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Enhance Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and use up many resources to manually remedy. With payment automation, you see where, when and why errors occurred. Unlike the manual process, with automation you’ll have the ability to methodically address and eliminate errors to boost quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraud, provide your operations greater transparency, meet the customers’ needs, and advance the total quality of your A/P processes.