Top Reasons Why You Should Automate Accounts Payable
While tech makes Accounts Payable payment automation indispensable for a lot of organizations, 60 percent of corporations in the USA are not aware of the numerous advantages of A/P automation. Leveraging software programs to implement the process in manner that is seamless and effortless, here are our major 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash requirements, accordingly getting rid of estimation. With increased transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and priorities which will impact your department with value add actions.
Reinforce internal controls
A manual A/P method is vulnerable to fraudulent activity. You multiply the challenges of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
Capitalize on Visibility
The outdated manual practice is affected with lack of awareness, in which can result in neglecting to acknowledge a portion of liabilities. This may understate expenses thereby overstate revenue, which can cause accounting and reporting abnormalities and ultimately fraud. A/P automation provides a whole audit trail of each and every step in the process, and lets management to quickly fix possible complications.
Satisfy Customers
Your suppliers prefer a more effective payment process. Easier payments result in deals and savings for you. When you pay your clients by means of virtual credit card, which is an individual issued card for a one-time use, you will earn monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your customers experience more click here efficient, streamlined payments and your A/P Department pivots to a cash generator.
Improve Quality
Prevent error, delay, and avoidable costs with an automated A/P process. A/P mistakes are expensive and consume many resources to manually correct. With payment automation, you see where, when and why faults happened. In contrast to the manual process, with automation you’ll be able to systematically address and reduce issues to boost quality.
A/P payment automation will save you cash, earn you extra revenue, reduce the risks of fraudulent activity, get your operations increased transparency, meet the customers’ needs, and improve the overall quality of your A/P processes.