Top Reasons Why You Should Automate Accounts Payable
Despite the fact that modern technology has made Accounts Payable payment automation simple for many corporations, 60 percent of corporations in the USA do not know of the numerous advantages of A/P automation. Leveraging software to apply the process in manner that is seamless and trouble-free, listed here are our top 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash requirements, accordingly removing speculation. With increased transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and priorities that will impact your department with value add activities.
Strengthen internal controls
A manual A/P method is at risk of fraudulent activity. You add to the risks of human oversight, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Increase Exposure
The obsolete manual method suffers from insufficient visibility, wherein can result in failing to acknowledge a part of liabilities. This can understate expenditures as well as overstate income, get more info that may result in accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation delivers a total audit trail of each step in the method, and permits management to rapidly solve possible difficulties.
Please Customers
Your vendors prefer a more effective payment process. More efficient payments result in discount rates and cost check here savings for you. When you pay your customers with virtual card, which is a single issued credit card for a one-time use, you earn monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a income generator.
Enhance Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P mistakes may be very costly and consume many resources to manually remedy. With payment automation, you see where, when and why problems transpired. Contrary to the manual procedure, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra revenue, reduce the risks of fraudulent activity, provide your operations better transparency, satisfy your customers’ demands, and improve the total quality of your A/P processes.