Top Reasons to Automate Accounts Payable
Even though tech has made Accounts Payable payment automation indispensable for a lot of corporations, 60 % of businesses in the USA do not know of the many benefits associated with A/P automation. Leveraging software to apply the process in manner that is seamless and easy, listed here are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, therefore getting rid of speculation. With increased transparency from A/P automation, visibility into the process allows your A/P department to concentrate on activities and priorities that will effect your department with value added actions.
Reinforce internal controls
A manual A/P process is subject to fraudulent activity. You raise the issues of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraudulent activity.
Increase Exposure
The outdated manual process is affected with lack of visibility, by which can result in failing to identify a portion of risks. This can understate operating expenses thereby overstate income, that may trigger accounting and reporting malfunctions and ultimately fraud. A/P here automation offers a total audit trail of each and every step in the method, and enables management to swiftly solve potential issues.
Satisfy Clients
Your vendors would like a more efficient payment method. More efficient payments result in deals and cost savings for you. If you pay your clients via virtual card, which is a single issued card for a one-time use, you generate monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Improve Quality
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are expensive and consume many resources to manually correct. With payment automation, you will see where, when and why problems happened. Unlike the manual procedure, with automation you’ll be in a position to systematically address and eliminate problems to enhance quality.
A/P payment automation can save you cash, earn you additional profit, reduce the risks of fraudulent activity, bring your operations better transparency, meet the customers’ needs, and enhance the overall quality of your A/P processes.