Top Reasons Why You Should Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for a number of businesses, 60 percent of businesses in the USA do not know of the many advantages of A/P automation. Leveraging software programs to apply the process in manner that is seamless and effortless, the following are our best five reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash requirements, accordingly removing uncertainty. With greater transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and priorities that can impact your department with value added activities.
Improve internal controls
A manual A/P process is vulnerable to fraud. You increase the risks of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraudulent activity.
The obsolete manual practice is affected with lack of visibility, by which can result in neglecting to realize a portion of liabilities. This could understate operating expenses as well as overstate revenue, which can contribute to accounting and reporting malfunctions and ultimately fraud. A/P automation offers an entire audit trail of every part of the method, and permits management to rapidly solve possible complications.
Your vendors want a more effective payment process. More efficient payments result in discounts and savings for you. Whenever you pay your customers by means of virtual credit card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s jointly beneficial for Accounts Payable here and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P mistakes are costly and consume many resources to manually resolve. With payment automation, you can see where, when and why faults occurred. Unlike here the manual process, with automation you’ll have the ability to systematically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraud, bring your operations greater transparency, meet the customers’ demands, and boost the overall quality here of your A/P processes.