Top Reasons to Automate Accounts Payable
Even though tech makes Accounts Payable payment automation indispensable for a number of companies, 60 percent of organizations in the US are unaware of the many advantages to A/P automation. Leveraging software applications to apply the method in manner that is seamless and convenient, the following are our major 5 reasons to automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, accordingly removing speculation. With better transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities which will impact your department with value added activities.
Reinforce internal controls
A manual A/P method is prone to fraudulent activity. You raise the challenges of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The outdated manual practice suffers from insufficient awareness, wherein can result in failing to acknowledge a segment of risks. This may understate expenses as well as overstate income, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation produces a complete audit trail of each part of the method, and allows management to rapidly deal with possible problems.
Your suppliers prefer a more effective payment process. Easier payments result in discount rates and cost savings for you. Whenever you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are costly and consume many resources to manually fix. With payment automation, you will see where, when and why issues transpired. Contrary to the manual method, with automation you’ll have the ability to systematically address and eliminate issues to improve quality.
A/P payment automation will save you cash, earn you extra income, reduce the risks of fraudulent activity, get your operations increased transparency, meet your customers’ needs, and boost the overall accounts payable solutions quality of your A/P processes.