Top Reasons Why You Should Automate Accounts Payable
While modern technology has made Accounts Payable payment automation simple for a number of companies, 60 percent of organizations in the US do not know of the countless advantages of A/P automation. Leveraging software applications to implement the process in manner that is seamless and easy, listed here are our major five reasons to automate.
Accounts Payable automation enables A/P to accurately project its pending cash specifications, consequently eliminating speculation. With increased transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that will effect your department with value add actions.
Strengthen central controls
A manual A/P method is susceptible to fraud. You increase the risks of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The outdated manual method suffers from insufficient visibility, by which can result in failing to identify a portion of liabilities. This could understate expenses and therefore overstate earnings, which can result in accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation produces a complete audit trail of each step in the process, and permits management to promptly read more solve potential difficulties.
Your vendors would like a more beneficial payment method. Easier payments result in special discounts and savings for you. If you pay your clients by way of virtual credit card, which is an individual issued card for a one-time use, you will earn monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and needless costs with an automated A/P process. A/P errors may be very costly and use up many resources to manually handle. With payment automation, you can see where, when and why issues read more happened. Contrary to the manual process, with automation you’ll be in a position to systematically address and get rid of issues to improve quality.
A/P payment automation can save you cash, earn you additional cash, lessen the risks of fraudulent activity, provide your operations increased transparency, meet your check here customers’ needs, and enhance the total quality of your A/P processes.