Top Reasons to Automate Accounts Payable
While tech has made Accounts Payable payment automation indispensable for a lot of companies, 60 percent of companies in the USA are unaware of the numerous advantages to A/P automation. Leveraging software to implement the method in manner that is seamless and easy, the following are our top 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash specifications, therefore eliminating speculation. With greater transparency from A/P automation, awareness into the process allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Improve central controls
A manual A/P process is prone to fraud. You add to the pitfalls of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
Optimize Awareness
The outdated manual method suffers from insufficient visibility, through which can result in neglecting to realize a portion of more info risks. This can understate expenditures and therefore overstate earnings, which can trigger accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and allows management to swiftly solve potential problems.
Satisfy Customers
Your vendors would like a more efficient payment method. Easier payments result in savings and cost savings for you. When you pay your customers by way of virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Improve Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and use up many resources to manually remedy. With payment automation, you see where, when and why errors happened. In contrast to the manual method, with automation you’ll have the ability to methodically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, lessen the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ demands, more info and improve the overall quality of your A/P processes.