Top Reasons Why You Should Automate Accounts Payable
Even though modern technology has made Accounts Payable payment automation indispensable for many companies, 60 % of corporations in the USA are unaware of the numerous benefits of A/P automation. Leveraging software applications to implement the process in manner that is seamless and convenient, the following are our top five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, consequently removing guess work. With greater transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and things that will effect your department with value add actions.
Strengthen central controls
A manual A/P process is vulnerable to fraudulent activity. You multiply the risks of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
Optimize Awareness
The obsolete manual process is affected with insufficient visibility, through which can result in failing to identify a part of liabilities. This could understate operating expenses and therefore overstate earnings, that may lead to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every step in the process, and permits check here management to promptly fix possible complications.
Satisfy Customers
Your suppliers want a more effective payment process. Easier payments result in deals and cost savings for you. If you pay your clients with virtual credit card, which is a single issued credit card for a one-time use, you will earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and needless costs with an automated A/P process. A/P errors are costly and consume many resources to manually solve. With payment automation, you can see where, when and why mistakes happened. Unlike the manual procedure, with automation you’ll be in a position to methodically address and get rid of problems to increase quality.
A/P payment automation can help you save cash, earn you extra earnings, reduce the risks of fraudulent activity, get your operations more transparency, meet your customers’ needs, and advance the total quality of your A/P processes.