Top Reasons to Automate Accounts Payable
Despite the fact that technology has made Accounts Payable payment automation a standard for many businesses, 60 percent of companies in the USA are unaware of the countless benefits associated with A/P automation. Leveraging software to implement the process in manner that is seamless and trouble-free, here are our major 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash requirements, consequently removing speculation. With better transparency from A/P automation, awareness into the process allows your A/P department to deal with tasks and things which will impact your department with value added activities.
Improve central controls
A manual A/P method is prone to fraud. You increase the risks of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and deter fraudulent activity.
Boost Visibility
The outdated manual practice suffers from lack of awareness, wherein can result in failing to identify a portion of liabilities. here This may understate operating expenses thereby overstate income, which can trigger accounting and reporting abnormalities and ultimately fraud. A/P automation delivers a total audit trail of each get more info step in the process, and allows management to promptly deal with potential difficulties.
Satisfy Customers
Your vendors want a more beneficial payment method. More efficient payments result in discount rates and savings for you. If you pay your customers with virtual card, which is an individual issued card for a one-time use, you earn monthly cash rebates. here It’s collectively good for Accounts Payable and Accounts Receivable. Your customers experience 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 use up many resources to manually remedy. With payment automation, you see where, when and why faults took place. In contrast to the manual procedure, with automation you’ll be in a position to systematically address and reduce issues to boost quality.
A/P payment automation can help you save cash, earn you extra earnings, decrease the risks of fraud, get your operations better transparency, satisfy your customers’ demands, and boost the overall quality of your A/P processes.