Top Reasons to Automate Accounts Payable
Even though tech makes Accounts Payable payment automation a standard for many companies, 60 percent of companies in the USA are not aware of the countless benefits associated with A/P automation. Leveraging software to utilize the process in manner that is seamless and effortless, here are our top five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore removing guesswork. With increased transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and things that will impact your department with value added actions.
Improve central controls
A manual A/P method is subject to fraud. You raise the challenges of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraud.
The outdated manual process suffers from lack of visibility, in which can result in neglecting to realize a part of risks. This could understate expenditures thereby overstate income, which can result in accounting and reporting malfunctions and ultimately fraud. A/P automation provides a whole audit trail of each part of the process, and permits management to rapidly handle potential issues.
Your vendors prefer a more beneficial payment method. Easier payments result in discounts and savings for you. If you pay more info your customers with virtual card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s mutually beneficial for Accounts read more Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors may be very costly and consume many resources to manually clear up. With payment automation, you can see where, when and why problems took place. Contrary to the manual procedure, with automation you’ll be able to methodically address and reduce issues to boost quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraud, bring your operations better transparency, satisfy your customers’ needs, and improve the total quality of your A/P processes.