Top Reasons Why You Should Automate Accounts Payable
While modern technology makes Accounts Payable payment automation a standard for many companies, 60 % of businesses in the USA are unaware of the many benefits associated with A/P automation. Leveraging software to implement the process in manner that is seamless and effortless, the following are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore getting rid of guesswork. With better transparency from A/P automation, visibility into the process allows your A/P department to focus on tasks and things which will impact your department with value add actions.
Reinforce internal controls
A manual A/P process is prone to fraud. You increase the risks of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraudulent activity.
Maximize Exposure
The outdated manual process is affected with lack of awareness, wherein can result in failing to identify a part of liabilities. This may understate expenditures as well as overstate earnings, that may trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of every part of the process, and enables management to promptly handle possible difficulties.
Please Clients
Your vendors want a more efficient payment method. More efficient payments result in discounts and cost savings for you. Whenever you pay your clients by way of virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers check here benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Improve Quality
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes may be very costly and take many resources to manually fix. With payment automation, you can see where, when and why problems happened. Unlike the manual process, with automation you’ll be able 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 fraud, bring your operations better transparency, fulfill your customers’ needs, and boost the overall quality of your A/P processes.