Top Reasons Why You Should Automate Accounts Payable
Even though modern technology has made Accounts Payable payment automation indispensable for many businesses, 60 % of corporations in the USA are not aware of the numerous benefits associated with A/P automation. Leveraging software applications to implement the process in manner that is seamless and convenient, the following are our major 5 reasons why you should automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, therefore eliminating guesswork. With more transparency from A/P automation, awareness into the system allows your A/P department to give attention to activities and things that will impact your department with value added activities.
Enhance central controls
A manual A/P process is vulnerable to fraudulent activity. You raise the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraud.
The obsolete manual practice suffers from lack of awareness, wherein can result in neglecting to acknowledge a portion of liabilities. This could understate expenses and therefore overstate earnings, which can trigger accounting and reporting abnormalities and ultimately fraud. A/P automation delivers an entire audit trail of every step in the process, and lets management to swiftly handle potential complications.
Your vendors prefer a more beneficial payment process. More efficient payments result in discount rates and savings for you. When 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 jointly beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are expensive and click here consume many resources to manually handle. With payment automation, you can see where, when and why mistakes occurred. Contrary to the manual procedure, with automation you’ll have the ability to methodically address and get rid of errors to improve quality.
A/P payment automation can save you cash, earn you additional profit, decrease the risks of fraud, bring your operations greater transparency, fulfill your customers’ needs, and enrich the total quality of your A/P processes.