Top Reasons Why You Should Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation indispensable for many businesses, 60 percent of organizations in the US are unaware of the countless advantages of A/P automation. Leveraging software programs to implement the process in manner that is seamless and easy, the following are our top 5 reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, consequently eliminating estimation. With more transparency from A/P automation, awareness into the system allows your A/P department to give attention to activities and priorities that can impact your department with value added actions.
Reinforce internal controls
A manual A/P process is vulnerable to fraud. You increase the threats of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The outdated manual process is affected with insufficient awareness, wherein can result in failing to realize a segment of liabilities. This can understate operating expenses as well as overstate income, which could trigger accounting and reporting abnormalities and ultimately fraud. A/P automation delivers a complete audit trail of each step in the method, and allows management to rapidly solve potential problems.
Your vendors want a more effective payment process. More efficient payments result in deals and cost savings for you. When you pay your customers via virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s jointly good for Accounts Payable and Accounts Receivable. Your customers experience 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 problems may be very costly and use up many resources to manually remedy. With payment automation, you will see where, when and why issues occurred. Contrary to the manual method, with automation you’ll be able to systematically address and reduce mistakes to boost quality.
A/P payment automation can help you save cash, earn you additional income, lessen the risks of fraudulent activity, bring your operations more transparency, satisfy your customers’ demands, and get more info advance the total quality of your A/P processes.