Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 % of organizations in the US are unaware of the numerous benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and easy, listed here are our main five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its pending cash requirements, consequently eliminating estimation. With increased transparency from A/P automation, visibility into the process allows your A/P department to concentrate on activities and things that can effect your department with value add activities.
Strengthen central controls
A manual A/P method is subject to fraudulent activity. You raise the issues of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
Increase Awareness
The outdated manual practice is affected with lack of awareness, through which can result in failing to realize a segment of risks. This could understate expenses as well as overstate earnings, which can contribute to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation more info offers a complete audit trail of each and every step in the method, and makes it possible for management to quickly resolve possible issues.
Please Customers
Your suppliers would like a more efficient payment process. More efficient payments result in discount rates and cost savings for you. When you pay your clients with virtual card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Enhance Quality
Avoid error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and use up many resources to click here manually solve. With payment automation, you will see where, here when and why issues occurred. Unlike the manual method, with automation you’ll be in a position to methodically address and eliminate errors to enhance quality.
A/P payment automation can help you save cash, earn you additional cash, reduce the risks of fraud, bring your operations greater transparency, meet your customers’ demands, and boost the overall quality of your A/P processes.