Top Reasons to Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation simple for a lot of companies, 60 percent of businesses in the US are unaware of the countless benefits associated with A/P automation. Leveraging software programs to implement the method in manner that is seamless and convenient, the following are our major 5 reasons to automate.
Accounts Payable automation lets A/P to correctly project its outstanding cash requirements, accordingly removing speculation. With increased transparency from A/P automation, awareness into the system 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, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraudulent activity.
The obsolete manual practice is affected with insufficient awareness, by which can result in failing to recognize a portion of liabilities. This can understate expenses and therefore overstate income, which can lead to accounting and reporting malfunctions and ultimately fraud. A/P automation offers a whole audit trail of each step in the method, and enables management to quickly fix potential issues.
Your vendors want a more efficient payment process. More efficient payments result in special offers and cost savings for you. When you pay your clients by means of virtual credit card, which is a single issued credit ap automation card for a one-time use, you generate monthly cash back incentives. 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 income generator.
Prevent error, delay, and avoidable costs with an automated A/P process. A/P errors may be very costly and consume many resources to manually resolve. With payment automation, you will see where, when and why issues happened. Contrary to the manual method, with automation you’ll be able to systematically address and get rid of issues to improve quality.
A/P payment automation can help you save cash, earn you extra cash, reduce the risks of fraud, provide your operations more transparency, meet the customers’ needs, and improve the overall quality of your A/P processes.