Top Reasons Why You Should Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation simple for many companies, 60 percent of organizations in the United States are unaware of the many advantages to A/P automation. Leveraging software applications to utilize the method in manner that is seamless and effortless, listed here are our main five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its outstanding cash requirements, consequently eliminating uncertainty. With greater transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that will effect your department with value added activities.
Improve internal controls
A manual A/P method is vulnerable to fraud. You add to the threats of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Boost Visibility
The obsolete manual process is affected with lack of awareness, wherein can result in failing to identify a part of risks. This can understate operating expenses and therefore overstate revenue, which can contribute 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 lets management to quickly handle possible issues.
Satisfy Customers
Your vendors prefer a more efficient payment method. More efficient payments result in discounts and savings for you. Whenever you pay your click here clients by way of virtual card, which is a single issued card for a one-time use, you will earn monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a income generator.
Improve Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes are expensive and consume many resources to manually resolve. With payment automation, you will see where, when and why errors happened. Unlike the manual procedure, with automation you’ll be in a position to systematically address and get rid of issues to enhance quality.
A/P payment automation can save you cash, earn you extra revenue, decrease the risks get more info of fraudulent activity, get your operations greater transparency, fulfill the customers’ needs, and boost the total quality of your A/P processes.