Top Reasons to Automate Accounts Payable
Even though modern technology has made Accounts Payable payment automation a standard for a number of businesses, 60 percent of companies in the United States are not aware of the many benefits of A/P automation. Leveraging software to utilize the process in manner that is seamless and trouble-free, the following are our major 5 reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, consequently getting rid of uncertainty. With increased transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Enhance internal controls
A manual A/P method is vulnerable to fraudulent activity. You increase the pitfalls of human error, overdue payments, missing 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The outdated manual practice suffers from lack of awareness, in which can result in neglecting to acknowledge a portion of liabilities. This may understate expenses and therefore overstate earnings, that may lead to accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every part of the process, and permits management to swiftly resolve potential troubles.
Your suppliers prefer a more efficient payment method. More efficient payments result in discounts and savings website 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 jointly good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes can be very expensive and take many resources to manually handle. With payment automation, you will see where, when and why problems happened. In contrast to the manual process, with automation you’ll be able to systematically address and reduce issues to increase quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, get your operations increased transparency, meet the customers’ needs, and boost the overall quality of your A/P processes.