Top Reasons to Automate Accounts Payable
While modern technology makes Accounts Payable payment automation a standard for many companies, 60 percent of organizations in the US are not aware of the numerous benefits of A/P automation. Leveraging software applications to apply the method in manner that is seamless and effortless, listed here are our main five reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash requirements, consequently getting rid of estimation. With increased transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and things which will impact your department with value added activities.
Enhance internal controls
A manual A/P method is vulnerable to fraudulent activity. You raise the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraudulent activity.
Improve Visibility
The obsolete manual process is affected with lack of visibility, through which can result in failing to identify a part of risks. This can website understate expenditures and therefore overstate earnings, which could cause accounting and reporting irregularities and ultimately fraud. A/P automation offers an entire audit trail of every step in the process, and lets management to promptly fix potential problems.
Please Clients
Your vendors want a more effective payment method. More efficient payments result in special discounts and savings for you. When you pay your clients with virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots website to a cash generator.
Improve Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems may be very costly and use up many resources to manually remedy. With payment automation, you will see where, when and why mistakes occurred. Contrary here to the manual process, with automation you’ll be in a position to systematically address and reduce problems to improve quality.
A/P payment automation will save you cash, earn you extra profit, reduce the risks of fraudulent activity, provide your operations increased transparency, satisfy your customers’ demands, and advance the overall quality of your A/P processes.