Top Reasons Why You Should Automate Accounts Payable
Even though modern technology makes Accounts Payable payment automation indispensable for many organizations, 60 percent of businesses in the United States are not aware of the countless benefits associated with A/P automation. Leveraging software applications to implement the process in manner that is seamless and effortless, the following are our major 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, therefore removing estimation. With better transparency from A/P automation, awareness into the system allows your A/P department to give attention to tasks and priorities that can impact your department with value add activities.
Enhance internal controls
A manual A/P process is at risk of fraudulent activity. You increase the challenges of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
Maximize Visibility
The obsolete manual method is affected with lack of awareness, through which can result in failing to realize a portion of risks. This may understate operating expenses thereby overstate income, which could trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit trail of every step in the process, and enables management to rapidly handle possible problems.
Please Clients
Your suppliers prefer a more effective payment process. More efficient payments result in special discounts and cost savings for you. If you pay your clients with virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash back incentives. It’s equally 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.
Improve Quality
Avoid error, delay, and unnecessary costs with an more info automated A/P process. A/P errors are costly and take many resources to manually clear up. With payment automation, you will see where, when and why problems took place. In contrast to the manual method, with automation you’ll be in a position to methodically address and get rid of problems to click here increase quality.
A/P payment automation can save you cash, earn you additional income, decrease the risks of fraud, bring your operations increased transparency, meet your customers’ demands, and improve the total quality of your A/P processes.