Top Reasons to Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 percent of organizations in the USA are not aware of the numerous advantages to A/P automation. Leveraging software to utilize the method in manner that is seamless and convenient, the following are our top five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, therefore getting rid of guesswork. With greater transparency from A/P automation, visibility into the process allows your A/P department to concentrate on tasks and priorities that can impact your department with value add activities.
Strengthen central controls
A manual A/P process is prone to fraud. You add to the risks of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
The outdated manual practice suffers from lack of awareness, through which can result in neglecting to acknowledge a segment of liabilities. This can understate expenditures thereby overstate income, which can trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation offers an entire audit trail of each website and every read more step in the process, and enables management to rapidly correct potential complications.
Your suppliers prefer a more efficient payment process. More efficient payments result in special offers and savings for you. If you pay your customers by means of virtual credit card, which is a single issued card for a one-time use, you generate monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P problems may be very costly and take many resources to manually correct. With payment automation, you will see where, when and why faults took place. Contrary to the manual process, with automation you’ll be able to methodically address and reduce problems to improve quality.
A/P payment automation will save you cash, earn you extra earnings, lessen the risks of fraud, provide your operations better transparency, meet the customers’ demands, and advance the overall quality of your A/P processes.