Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation indispensable for numerous businesses, 60 percent of businesses in the USA are not aware of the countless advantages to A/P automation. Leveraging software applications to utilize the process in manner that is seamless and convenient, here are our best 5 reasons to automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its outstanding cash requirements, consequently removing speculation. With more transparency from A/P automation, visibility into the process allows your A/P department to focus on tasks and things that can impact your department with value add activities.
Enhance central controls
A manual A/P process is at risk of fraud. You multiply the pitfalls of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Optimize Exposure
The outdated manual practice suffers from lack of check here awareness, in which can result in neglecting to identify a portion of risks. This could understate expenses and therefore overstate income, that may result in accounting and reporting abnormalities and ultimately fraud. A/P automation produces a whole audit trail of every step in the process, and lets management to promptly handle potential complications.
Satisfy Customers
Your suppliers prefer a more efficient payment method. Easier payments result in discount rates and cost savings for you. If you pay your clients via virtual credit card, which is a single issued credit card for a one-time use, you earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Improve Quality
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P problems may be very costly and consume many resources to manually clear up. With payment automation, you will see where, when and why faults took place. Unlike the manual procedure, with automation you’ll have the ability to methodically address and eliminate errors to enhance quality.
A/P payment automation can help you save cash, earn you extra cash, reduce the risks of fraud, get your operations greater transparency, meet the customers’ needs, and improve the overall quality of your A/P processes.