Top Reasons to Automate Accounts Payable
While tech makes Accounts Payable payment automation indispensable for a number of corporations, 60 % of organizations in the USA are not aware of the many benefits of A/P automation. Leveraging software to utilize the process in manner that is seamless and effortless, the following are our main 5 reasons why you should automate.
Accounts Payable automation lets A/P to accurately project its outstanding cash requirements, therefore removing estimation. With greater transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and priorities that can effect your department with value add activities.
Enhance internal controls
A manual A/P method is at risk of fraud. You raise the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraud.
The obsolete manual process is affected with insufficient visibility, through which can result in failing to identify a segment of risks. This can understate expenditures as well as overstate income, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation produces a complete audit trail of each and every step in the process, and permits management to promptly solve potential troubles.
Your vendors prefer a more efficient payment method. More efficient payments result in discounts and savings for you. When you pay your customers by means of virtual card, which is a single issued card for a one-time use, you generate monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers get more info benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are costly and consume many resources to manually fix. With payment automation, you can see where, when and why mistakes happened. Unlike the manual process, with automation you’ll be in a position to methodically address and get rid of mistakes to enhance quality.
A/P payment automation can save you cash, earn you extra cash, lessen the risks of fraudulent activity, bring your operations greater transparency, satisfy the customers’ demands, and improve the total quality of your A/P processes.