Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a number of organizations, 60 % of businesses in the United States are not aware of the many benefits of A/P automation. Leveraging software applications to implement the process in manner that is seamless and easy, here are our top five reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore removing guess work. With increased transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and things that will impact your department with value added actions.
Strengthen central controls
A manual A/P process is at risk of fraud. You multiply the pitfalls of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraudulent activity.
Improve Visibility
The outdated manual process suffers from insufficient awareness, by which can result in failing to acknowledge a part of risks. This may understate operating expenses as well as overstate earnings, which could trigger accounting and reporting abnormalities and ultimately fraud. A/P automation delivers a whole audit trail of each step in the method, and lets management to swiftly handle potential issues.
Please Customers
Your vendors prefer a more beneficial payment method. More efficient payments result in special offers and savings for you. If you pay your customers by way of virtual card, which is a single issued credit card for a one-time use, you earn monthly cash rebates. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Improve Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P problems are expensive and use up many resources to manually handle. With payment automation, you see where, when and why errors happened. In contrast to the manual method, with automation you’ll have the ability to systematically address and get rid of mistakes to enhance quality.
A/P payment automation can help you save cash, earn you extra more info income, reduce the risks of fraudulent activity, provide your operations more transparency, fulfill your customers’ needs, and enhance the total accounts payable solutions quality of your A/P processes.