Top Reasons to Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation simple for a lot of businesses, 60 % of organizations in the US are unaware of the many advantages of A/P automation. Leveraging software applications to apply the process in manner that is seamless and convenient, here are our top five reasons to automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash specifications, therefore removing speculation. With increased transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and priorities that will effect your department with value add actions.
Reinforce internal controls
A manual A/P method is subject to fraudulent activity. You raise the threats of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
The outdated manual practice suffers from insufficient awareness, through which can result in failing to acknowledge a part of liabilities. This can understate operating expenses and therefore overstate earnings, that may cause accounting and reporting abnormalities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to rapidly resolve potential problems.
Your suppliers want a more efficient payment method. Easier payments result in discount rates and cost savings for you. If you pay your customers by means of virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s equally good for Accounts Payable website and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and avoidable costs with an automated A/P process. A/P errors are expensive and consume many resources to manually remedy. With get more info payment automation, you see where, when and why errors occurred. Contrary to the manual process, with automation you’ll have the ability to methodically address and eliminate problems to improve quality.
A/P payment automation will save you cash, earn you extra profit, lessen the risks of fraud, get your operations greater transparency, fulfill your customers’ needs, and improve the total quality of your A/P processes.