Top Reasons to Automate Accounts Payable
While tech makes Accounts Payable payment automation a standard for a lot of companies, 60 % of organizations in the USA are unaware of the countless advantages of A/P automation. Leveraging software programs to apply the process in manner that is seamless and convenient, here are our main 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its pending cash requirements, accordingly getting rid of estimation. With greater transparency from A/P automation, visibility into the process allows your A/P department to concentrate on tasks and things which will effect your department with value add activities.
Reinforce central controls
A manual A/P method is prone to fraud. You add to the threats of human error, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The outdated manual practice suffers from insufficient visibility, by which can result in failing to recognize a segment of risks. This may understate expenditures thereby overstate income, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation offers get more info a complete audit trail of each part of the method, and permits management to promptly more info fix possible issues.
Your vendors prefer a more effective payment process. Easier payments result in savings and cost 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 generate monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and take many resources to manually handle. With payment automation, you see where, when and why errors occurred. Unlike the manual process, with automation you’ll be able to methodically address and reduce issues to boost quality.
A/P payment automation will save you cash, earn you additional cash, lessen the risks of fraudulent activity, get your operations better transparency, fulfill the customers’ demands, and boost the overall quality of your A/P processes.