Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation a standard for a number of organizations, 60 % of companies in the USA are not aware of the many benefits associated with A/P automation. Leveraging software to implement the process in manner that is seamless and easy, the following are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash specifications, consequently removing estimation. With greater transparency from A/P automation, visibility into the process allows your A/P department to give attention to tasks and things that can effect your department with value added actions.
Enhance central controls
A manual A/P method is prone to fraudulent activity. You raise the risks of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraud.
Improve Exposure
The outdated manual process is affected with lack of awareness, by which can result in failing to identify a portion of risks.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 fraudulent activity. A/P automation provides a complete audit trail of each part of the process, and allows management to swiftly resolve potential issues.
Satisfy Clients
Your vendors would like a more efficient payment method. More efficient payments result in discount rates and cost savings for you. If you pay your clients via virtual card, which is a single issued credit card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Enhance Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes may be very costly and take many resources website to manually solve. With payment automation, you can see where, when and why mistakes occurred. Contrary to the manual method, with automation you’ll have the ability to systematically address and reduce problems to enhance quality.
A/P payment automation can save you cash, earn you additional earnings, reduce the risks of fraudulent activity, bring your operations better transparency, fulfill the customers’ demands, and improve the overall quality of your A/P processes.