Top Reasons to Automate Accounts Payable
Despite the fact that technology makes Accounts Payable payment automation indispensable for numerous organizations, 60 percent of organizations in the USA do not know of the numerous advantages of A/P automation. Leveraging software applications to utilize the process in manner that is seamless and convenient, the following are our major five reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its pending cash specifications, consequently removing speculation. With increased transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and priorities that can effect your department with value added activities.
Enhance central controls
A manual A/P process is prone to fraud. You increase the risks of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraud.
The outdated manual process is affected with lack of visibility, through which can result in failing to recognize a segment of liabilities. This can understate expenditures thereby overstate revenue, that may contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation delivers a complete audit trail of more info each and every part of the method, and website makes it possible for management to promptly resolve possible complications.
Your suppliers prefer a more efficient payment process. More efficient payments result in discount rates and savings for you. When you pay your clients by means of virtual credit card, which is a single 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, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and use up many resources to manually resolve. With payment automation, you can see where, when and why errors occurred. In contrast to the manual procedure, with automation you’ll be in a position to systematically address and eliminate issues to improve quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, bring your operations increased transparency, fulfill the customers’ needs, and boost the overall quality of your A/P processes.