Top Reasons Why You Should Automate Accounts Payable
Although tech makes Accounts Payable payment automation a standard for a lot of companies, 60 percent of businesses in the US are not aware of the countless benefits associated with A/P automation. Leveraging software programs to utilize the process in manner that is seamless and effortless, here are our best 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its outstanding cash requirements, consequently getting rid of guesswork. With more transparency from A/P automation, visibility into the system allows your A/P department to give attention to tasks and priorities that can effect your department with value add activities.
Enhance internal controls
A manual A/P process is prone to fraudulent activity. You raise the challenges of human oversight, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraudulent activity.
Maximize Exposure
The obsolete manual process suffers from lack of awareness, by which can result in neglecting to realize a get more info portion of liabilities. This can understate expenditures and therefore overstate earnings, that may lead to accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation produces an entire audit trail click here of each and every step in the process, and lets management to swiftly correct potential troubles.
Satisfy Clients
Your suppliers would like a more effective payment process. More efficient payments result in deals and cost savings for you. If you pay your customers with virtual card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined 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 errors can be very expensive and take many resources to manually clear up. With payment automation, you can see where, when and why faults transpired. Unlike the manual process, with automation you’ll have the ability to systematically address and get rid of mistakes to increase quality.
A/P payment automation can help you save cash, earn you extra profit, decrease the risks of fraud, bring your operations greater transparency, meet the customers’ demands, and boost the overall quality of your A/P processes.