Top Reasons Why You Should Automate Accounts Payable
Even though technology has made Accounts Payable payment automation indispensable for many organizations, 60 % of corporations in the United States do not know of the numerous benefits of A/P automation. Leveraging software applications to utilize the process in manner that is seamless and easy, listed here are our major five reasons why you should automate.
Accounts Payable automation allows A/P to correctly project its pending cash specifications, consequently eliminating speculation. With increased transparency from A/P automation, visibility into the process allows your A/P department to focus on tasks and things which will impact your department with value added actions.
Improve central controls
A manual A/P process is at risk of fraud. You multiply the challenges of human error, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
The obsolete manual process is affected with lack of visibility, in which can result in failing to realize a segment of liabilities. This can understate expenses and therefore overstate earnings, which can cause accounting and reporting irregularities and ultimately fraud. A/P automation delivers a complete audit trail of each and every part of the process, and enables management to swiftly resolve potential troubles.
Your suppliers would like a more effective payment process. More efficient payments result in deals and savings for you. If you pay your customers with virtual card, which is an individual issued card for a one-time use, you will earn monthly cash rebates. It’s jointly beneficial for Accounts read more Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and avoidable costs with an automated A/P process. A/P mistakes are expensive and take many resources to manually remedy. With payment automation, you can see where, when and why issues took place. Unlike the manual method, with automation you’ll be able to systematically address and get rid of errors to boost quality.
A/P payment automation will save you cash, earn you additional cash, decrease the risks of fraud, get your operations increased transparency, satisfy your customers’ needs, and enhance the overall quality of your A/P processes.