Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for a lot of organizations, 60 percent of corporations in the USA are unaware of the countless benefits of A/P automation. Leveraging software programs to implement the process in manner that is seamless and trouble-free, here are our best five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its outstanding cash specifications, accordingly removing speculation. 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 impact your department with value add activities.
Improve central controls
A manual A/P method is susceptible to fraudulent activity. You multiply the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
Improve Visibility
The outdated manual process is affected with insufficient visibility, wherein can result in failing to realize a part of risks. This may understate operating expenses and therefore overstate earnings, which can trigger accounting and reporting malfunctions and ultimately fraud. A/P automation delivers a complete audit trail of each step in the method, and makes it possible for management to quickly fix possible troubles.
Satisfy Customers
Your vendors want a more efficient payment method. Easier payments result in discount rates and cost savings for you. When you pay your clients via virtual card, which is an individual issued card for a one-time use, you will earn monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined accounts payable solutions payments and your A/P Department pivots to a income generator.
Improve Quality
Avoid error, delay, and unneeded costs with an automated A/P process. A/P problems are expensive and take many resources to manually solve. With payment automation, you can see where, when and why mistakes transpired. In contrast 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 help you save cash, earn you additional income, reduce the risks of fraudulent activity, provide your operations increased transparency, meet the customers’ demands, and boost the overall quality of your A/P processes.