Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation indispensable for numerous businesses, 60 percent of organizations in the US are unaware of the countless advantages of A/P automation. Leveraging software to utilize the method in manner that is seamless and easy, here are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its pending cash requirements, therefore eliminating guess work. With increased transparency from A/P automation, awareness into the system allows your A/P department to focus on activities and priorities which will impact your department with value add activities.
Improve internal controls
A manual A/P process is subject to fraud. You increase the issues of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraudulent activity.
Boost Visibility
The obsolete manual practice suffers from insufficient awareness, wherein can result in neglecting to identify a part of liabilities. This may understate operating expenses thereby overstate revenue, which could cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation offers more info a complete audit trail of each and every step in the process, and enables management to promptly deal with potential complications.
Satisfy Customers
Your vendors would like a more efficient payment method. More efficient 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 credit card for a one-time use, you earn monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Enhance Quality
Avoid error, delay, and pointless costs with an automated A/P process. A/P problems are costly and consume many resources to manually handle. With payment automation, you will see where, when and why faults transpired. In contrast to the manual method, with automation you’ll have the ability to methodically address and get rid of problems to improve quality.
A/P payment automation will save you cash, earn you extra earnings, decrease the risks of fraud, bring your operations greater transparency, meet the customers’ needs, and advance the total quality of your A/P processes.