Top Reasons to Automate Accounts Payable
Even though modern technology has made Accounts Payable payment automation a standard for numerous businesses, 60 percent of companies in the United States do not know of the many benefits of A/P automation. Leveraging software to utilize the process in manner that is seamless and effortless, the following are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, consequently getting rid of uncertainty. With increased transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Enhance internal controls
A manual A/P method is subject to fraud. You add to the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
Boost Exposure
The outdated manual method is affected with lack of visibility, by which can result in neglecting to realize a part of liabilities. This could understate operating expenses and therefore overstate earnings, that may result in accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation delivers a total audit trail check here of each part of the method, and enables management to swiftly correct potential difficulties.
Please Clients
Your vendors would like a more beneficial payment process. More efficient payments result in special offers and cost savings for you. If you pay your customers via virtual card, which is a single issued card for a one-time use, you generate monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Enhance Quality
Avoid error, delay, and unneeded costs with an automated A/P process. A/P errors are expensive and consume many resources to manually solve. With payment automation, you can see where, when and why issues occurred. Contrary to the manual method, with automation you’ll have the ability to methodically address and get rid of mistakes to boost quality.
A/P payment automation will save you cash, earn you extra cash, lessen the risks of fraudulent activity, provide your operations better transparency, fulfill the customers’ needs, and advance the total quality of your A/P processes.