Top Reasons to Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a number of corporations, 60 percent of companies in the United States do not know of the numerous advantages to A/P automation. Leveraging software programs to apply the process in manner that is seamless and effortless, the following are our best five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its outstanding cash specifications, consequently removing estimation. With greater transparency from A/P automation, visibility into the process allows your A/P department to deal with activities and priorities which will impact your department with value add activities.
Reinforce central controls
A manual A/P process is susceptible to fraud. You multiply the threats of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
Capitalize on Awareness
The outdated manual method suffers from insufficient visibility, in which can result in failing to identify a part of liabilities. This may understate operating expenses and therefore overstate earnings, which could result in accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the process, and lets management to rapidly correct potential problems.
Satisfy Clients
Your vendors prefer a more effective payment process. More efficient payments result in discounts and savings for you. Whenever you pay your clients via virtual 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 and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Enhance Quality
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why faults occurred. Unlike the manual process, with automation you’ll have the ability to systematically address click here and get rid of mistakes to increase quality.
A/P payment automation can help you save cash, earn you additional cash, lessen the risks of fraudulent activity, provide your operations more transparency, fulfill the customers’ demands, and boost the overall quality of your A/P processes.