Top Reasons to Automate Accounts Payable
Despite the fact that technology makes Accounts Payable payment automation a standard for a number of organizations, 60 % of businesses in the United States are not aware of the countless advantages of A/P automation. Leveraging software applications to apply the method in manner that is seamless and convenient, listed here are our best five reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash specifications, therefore eliminating estimation. With increased transparency from A/P automation, visibility into the process allows your A/P department to concentrate on tasks and priorities that can effect your department with value add actions.
Strengthen internal controls
A manual A/P method is subject to fraud. You raise the challenges of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
Capitalize on Awareness
The obsolete manual method is affected with lack of awareness, wherein can result in failing to identify a portion of liabilities. This may understate expenditures as well as overstate earnings, that may cause accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to rapidly resolve potential complications.
Satisfy Customers
Your vendors would like a more efficient payment method. Easier payments result in deals and cost savings for you. When you pay your customers here by way of virtual credit card, which is a single issued card for a one-time use, you generate monthly cash back incentives. click here It’s equally beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Enhance Quality
Prevent error, delay, and avoidable costs with an automated A/P process. A/P problems are costly and use up many resources to manually remedy. With payment automation, you see where, when and why mistakes happened. In contrast to the manual method, with automation you’ll be in a position to methodically address and reduce problems to boost quality.
A/P payment automation will save you cash, earn you additional cash, lessen the risks of fraudulent activity, provide your operations more transparency, fulfill your customers’ demands, and enrich the overall quality of your A/P processes.