Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation a standard for a number of companies, 60 percent of organizations in the US are unaware of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and easy, listed here are our main 5 reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash specifications, consequently getting rid of guess work. With greater transparency from A/P automation, visibility into the process allows your A/P department to focus on tasks and priorities which will impact your department with value add actions.
Improve internal controls
A manual A/P method is vulnerable to fraudulent activity. You multiply the pitfalls of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The obsolete manual method is affected with lack of visibility, wherein can result in neglecting to realize a part of liabilities. This may understate expenses thereby overstate revenue, which can cause accounting and reporting abnormalities and ultimately fraud. A/P automation provides an entire audit trail of every step in the process, and makes it possible for management to rapidly deal with possible issues.
Your vendors want a more effective payment process. Easier payments result in savings and cost savings for you. Whenever you pay your clients by way of virtual card, which is a single issued card for a one-time use, you generate monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and use up many resources to manually correct. With click here payment automation, you will see where, when and why mistakes occurred. In contrast to the manual process, with automation you’ll be able to methodically address and get rid of mistakes to enhance quality.
A/P payment automation can help you save cash, earn you additional cash, decrease the risks of fraudulent activity, get your operations greater transparency, satisfy your customers’ needs, and boost the overall quality of your A/P processes.