Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for many organizations, 60 % of businesses in the United States are not aware of the countless advantages of A/P automation. Leveraging software programs to utilize the process in manner that is seamless and trouble-free, the following are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its outstanding cash specifications, consequently getting rid of guesswork. With more transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities which will impact your department with value added activities.
Reinforce central controls
A manual A/P process is susceptible to fraudulent activity. You increase the threats of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
Improve Awareness
The obsolete manual process suffers from lack of visibility, through which can result in failing to recognize a portion of liabilities. This could understate expenditures thereby overstate earnings, which could trigger accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation offers an entire audit trail of each and every step in the method, and makes it possible for management to promptly solve potential problems.
Please Customers
Your suppliers would like a more effective payment method. Easier payments result in discounts and cost savings for you. If you pay your customers via virtual credit card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Enhance Quality
Avoid error, delay, and pointless costs with an automated A/P process. A/P more info mistakes are costly and use up many resources to manually fix. With payment automation, you see where, when and why problems transpired. Unlike the manual process, with automation you’ll be in a position to methodically address and eliminate mistakes to increase quality.
A/P payment automation will save you cash, earn you additional revenue, reduce the risks of fraud, bring your operations increased transparency, meet your customers’ demands, and improve the overall quality of your A/P processes.