Top Reasons Why You Should Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation indispensable for many companies, 60 percent of organizations in the US do not know of the countless benefits associated with A/P automation. Leveraging software to implement the method in manner that is seamless and trouble-free, here are our best 5 reasons to automate.
Accounts Payable automation allows A/P to accurately project its pending cash requirements, therefore getting rid of speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with tasks and priorities that can impact your department with value add actions.
Reinforce internal controls
A manual A/P process is subject to fraudulent activity. You increase the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The obsolete manual method suffers from insufficient visibility, in ap automation which can result in failing to identify a portion of risks. This can understate operating expenses thereby overstate income, that may cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the process, and allows management to swiftly handle possible difficulties.
Your vendors prefer a more effective payment process. More efficient payments result in deals and cost savings for you. When you pay your clients via virtual credit card, which is read more an individual issued card for a one-time use, you earn monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and use up many resources to manually resolve. With payment automation, you will here see where, when and why faults occurred. Unlike the manual method, with automation you’ll be in a position to methodically address and reduce mistakes to enhance quality.
A/P payment automation can save you cash, earn you extra earnings, lessen the risks of fraudulent activity, bring your operations greater transparency, meet your customers’ demands, and boost the overall quality of your A/P processes.