Top Reasons Why You Should Automate Accounts Payable
Even though technology has made Accounts Payable payment automation simple for a lot of companies, 60 percent of businesses in the US do not know of the countless advantages to A/P automation. Leveraging software programs to implement the process in manner that is seamless and effortless, the following are our major five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, consequently getting rid of estimation. With more transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and things which will impact your department with value added activities.
Reinforce central controls
A manual A/P process is at risk of fraud. You multiply the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual method suffers from lack of awareness, wherein can result in failing to identify a portion of liabilities. This can understate expenditures and therefore overstate earnings, which can trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a complete audit trail of each step in the process, and enables management to rapidly correct possible difficulties.
Your vendors prefer a more efficient payment method. More efficient payments result in special discounts and savings for you. Whenever you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes may be very costly and take many resources to manually clear up. With payment automation, you see where, when and why issues transpired. Contrary to the manual method, with automation you’ll have the ability to systematically address and reduce problems to increase quality.
A/P payment automation can help you save cash, earn you additional cash, decrease the risks of fraud, provide your operations increased transparency, meet the customers’ demands, and website improve the total quality of your A/P processes.