Top Reasons Why You Should Automate Accounts Payable
While tech has made Accounts Payable payment automation a standard for a lot of businesses, 60 percent of companies in the USA do not know of the numerous advantages of A/P automation. Leveraging software to utilize the method in manner that is seamless and effortless, listed here are our top five reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its pending cash requirements, therefore getting rid of guesswork. With increased transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and priorities which will effect your department with value added actions.
Enhance internal controls
A manual A/P process is subject to fraudulent activity. You add to the challenges of human error, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Increase Awareness
The obsolete manual read more method suffers from insufficient awareness, wherein can result in neglecting to recognize a segment of liabilities. This may understate expenditures and therefore overstate revenue, which can cause accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation offers a total audit trail of each and every step in the process, and allows management to swiftly deal with possible difficulties.
Satisfy Customers
Your vendors would like a more effective payment process. Easier payments result in special offers and savings for you. Whenever you pay your clients via virtual card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s jointly beneficial 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 needless costs with an automated A/P process. A/P mistakes may be very costly and use up many resources to manually resolve. With payment automation, you will see where, when and why faults transpired. Unlike the manual method, with automation you’ll be in a position to methodically address and get rid of mistakes to increase quality.
A/P payment automation can help you save cash, earn you extra profit, decrease the risks of fraudulent activity, provide your operations better website transparency, fulfill the customers’ needs, and improve the total quality of your A/P processes.