Top Reasons to Automate Accounts Payable
Although 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 many advantages of A/P automation. Leveraging software programs to apply the process in manner that is seamless and convenient, here are our top 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, therefore eliminating uncertainty. With better transparency from A/P automation, visibility into the process allows your A/P department to concentrate on activities and priorities that can effect your department with value add activities.
Improve central controls
A manual A/P method is at risk of fraudulent activity. You raise the pitfalls of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraudulent activity.
Boost Awareness
The outdated manual method is affected with insufficient awareness, by which can result in neglecting to recognize a portion of liabilities. This may understate expenditures and therefore overstate income, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation offers a total audit trail of each and every step in the method, and enables management to promptly handle potential complications.
Satisfy Customers
Your vendors would like a more efficient payment method. Easier payments result in special offers and savings for get more info you. Whenever you pay your customers by way of virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash rebates. It’s jointly good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Improve Quality
Prevent error, delay, and avoidable costs with an automated A/P process. A/P problems can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why problems took place. In contrast to the manual process, with automation you’ll be able to methodically address and eliminate problems to enhance quality.
A/P payment automation will save you cash, earn you extra revenue, decrease the risks of fraudulent activity, get your operations greater transparency, fulfill the customers’ demands, and enrich the overall quality of your A/P processes.