Top Reasons to Automate Accounts Payable
While modern technology makes Accounts Payable payment automation simple for a lot of businesses, 60 % of corporations in the United States are unaware of the numerous advantages to A/P automation. Leveraging software applications to apply the process in manner that is seamless and easy, listed here are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its pending cash requirements, consequently eliminating estimation. With more transparency from A/P automation, awareness into the system allows your A/P department to give attention to activities and priorities that will effect your department with value added actions.
Improve internal controls
A manual A/P process is vulnerable to fraud. You increase the risks of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraudulent activity.
Improve Awareness
The outdated manual practice is affected with lack of awareness, through which can result in neglecting to recognize a part of liabilities. This may understate expenditures and therefore overstate revenue, which could lead to accounting and reporting check here irregularities and ultimately fraud. A/P automation delivers an entire audit trail of each part of the process, and allows management to promptly handle potential complications.
Satisfy Clients
Your suppliers would like a more beneficial payment method. Easier payments result in discounts and savings get more info for you. If you pay your customers by way of virtual card, which is a single issued credit card for a one-time use, you generate monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Improve 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 handle. With payment automation, you see where, when and why errors took place. Contrary to the manual procedure, with automation you’ll be able to systematically address and get rid of problems to boost quality.
A/P payment automation can save you cash, earn you extra earnings, decrease read more the risks of fraudulent activity, provide your operations better transparency, meet your customers’ demands, and enrich the overall quality of your A/P processes.