Top Reasons Why You Should Automate Accounts Payable
Although technology has made Accounts Payable payment automation simple for numerous businesses, 60 percent of companies in the United States are not aware of the many advantages to A/P automation. Leveraging software to utilize the process in manner that is seamless and trouble-free, the following are our main 5 reasons to automate.
Accounts Payable automation lets 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.
Strengthen internal controls
A manual A/P method is at risk of 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.
The obsolete manual practice suffers from lack of visibility, in which can result in failing to identify a segment of risks. This can understate expenditures as well as overstate revenue, that may result in accounting and reporting irregularities and ultimately fraud. A/P automation delivers a whole audit trail of each and every part of the process, and enables management to rapidly correct potential difficulties.
Your vendors would like a more efficient payment method. More efficient payments result in savings and cost savings for you. Whenever you pay your customers by way of virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s mutually beneficial for here Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems are costly and take many resources to manually solve. With payment automation, you can see where, when and why errors occurred. Unlike the manual procedure, with automation you’ll be in a position to methodically address and get rid of mistakes to enhance quality.
A/P payment automation can save you cash, earn you extra cash, lessen the risks of fraudulent activity, bring your operations greater transparency, meet the customers’ demands, and enrich the overall quality of your A/P processes.