Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation indispensable for a number of businesses, 60 percent of businesses in the USA are not aware of the numerous benefits of A/P automation. Leveraging software to apply the process in manner that is seamless and convenient, here are our best five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash requirements, consequently removing guesswork. With better transparency from A/P automation, visibility into the process allows your A/P department to give attention to tasks and priorities that will effect your department with value add activities.
Improve internal controls
A manual A/P process is prone to fraud. You multiply the issues of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
Maximize Exposure
The outdated manual process suffers from insufficient visibility, in which can result in failing to identify a segment of risks. ap automation This could understate operating expenses as well as overstate income, that may lead to accounting and reporting malfunctions and ultimately fraud. A/P automation offers an entire audit trail of each part of the method, and enables management to quickly correct possible issues.
Please Clients
Your suppliers want a more effective payment process. More efficient payments result in discount rates and savings for you. When you pay your clients by means of virtual card, which is an individual 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, streamlined payments and your A/P Department pivots to a income generator.
Enhance Quality
Prevent error, delay, and avoidable costs with an automated A/P process. A/P problems are expensive and use up many resources to manually fix. With payment automation, you will see where, when and why issues happened. Unlike the manual process, with automation you’ll have the ability to systematically address and reduce problems to enhance quality.
A/P payment automation will save you get more info cash, earn you additional cash, decrease the risks of fraud, provide your operations more transparency, satisfy your customers’ demands, and advance the overall quality of your A/P processes.