Top Reasons to Automate Accounts Payable
While tech makes Accounts Payable payment automation a standard for many corporations, 60 % of businesses in the US are not aware of the many benefits of A/P automation. Leveraging software programs to implement the method in manner that is seamless and easy, here are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash specifications, therefore removing uncertainty. With more transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities that will effect your department with value add activities.
Enhance internal controls
A manual A/P process is vulnerable to fraudulent activity. You raise the issues of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
Improve Awareness
The obsolete manual method is affected with lack of awareness, through which can result in failing to realize a portion of risks. This may understate expenditures as well as overstate earnings, which can contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to get more info rapidly resolve potential complications.
Satisfy Customers
Your vendors would like a more efficient payment method. Easier payments result in discount rates and cost savings for you. If you pay your customers by means of virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Improve Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and use up many resources to check here manually remedy. With payment automation, you see where, when and why errors happened. In contrast to the manual method, with automation you’ll have the ability to methodically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraudulent activity, get your operations increased transparency, fulfill your customers’ demands, and improve the total quality of your A/P processes.