Top Reasons to Automate Accounts Payable
Although tech makes Accounts Payable payment automation a standard for a lot of businesses, 60 percent of businesses in the United States do not know of the many benefits of A/P automation. Leveraging software applications to apply the method in manner that is seamless and trouble-free, the following are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently getting rid of guess work. With greater transparency from A/P automation, awareness into the process allows your A/P department to concentrate on tasks and things that will effect your department with value add activities.
Enhance central controls
A manual A/P process is susceptible to fraudulent activity. You raise the challenges of human oversight, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
Boost Exposure
The outdated manual practice suffers from insufficient get more info visibility, by which can result in neglecting to acknowledge a segment of liabilities. This may understate expenditures and therefore overstate income, which can result in accounting and reporting abnormalities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and makes it possible for management to rapidly correct potential complications.
Satisfy Customers
Your vendors would like a more efficient payment method. Easier payments result in special offers and savings for you. If you pay your clients by means of virtual card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and use up many resources to manually solve. With payment automation, you will see where, when and why issues happened. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and reduce issues to boost quality.
A/P payment automation can help you save cash, earn you extra revenue, lessen the risks of fraudulent activity, provide your operations better transparency, satisfy the customers’ demands, and boost the overall quality get more info of your A/P processes.