Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for a lot of businesses, 60 % of businesses in the US are not aware of the many advantages to A/P automation. Leveraging software programs to apply the method in manner that is seamless and easy, here are our major 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its outstanding cash requirements, consequently getting rid of uncertainty. With more transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and priorities which will effect your department with value add activities.
Reinforce central controls
A manual A/P method is susceptible to fraud. You multiply the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraud.
Maximize Visibility
The outdated manual practice suffers from lack of awareness, in which can result in neglecting to realize a segment of liabilities. This could understate expenses click here and therefore overstate earnings, which can trigger accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides a check here total audit trail of every part of the process, and allows management to quickly solve potential difficulties.
Satisfy Customers
Your vendors would like a more beneficial payment process. More efficient payments result in savings and savings for you. If you pay your customers via virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. 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 revenue generator.
Enhance Quality
Prevent error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and consume many resources to manually remedy. With payment automation, you will see where, when and why issues happened. Unlike the manual procedure, with automation you’ll be in a position to systematically address and get rid of errors to boost quality.
A/P payment automation can help you save cash, earn you extra cash, decrease the risks of fraud, get your operations greater transparency, fulfill the customers’ demands, and improve the overall quality of your A/P processes.