Top Reasons to Automate Accounts Payable
Although tech makes Accounts Payable payment automation a standard for numerous organizations, 60 percent of businesses in the US do not know of the numerous advantages of A/P automation. Leveraging software to apply the method in manner that is seamless and trouble-free, here are our best five reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash specifications, consequently removing uncertainty. With better 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.
Reinforce central controls
A manual A/P method is prone to fraud. You raise the risks of human oversight, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraud.
Increase Exposure
The obsolete manual method suffers from insufficient visibility, wherein can result in failing to realize a segment of risks. This could understate expenses and therefore overstate revenue, that may cause accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation provides a whole audit trail of each and every step in the process, and permits management to quickly resolve potential issues.
Please Clients
Your vendors would like a more efficient payment process. More efficient payments result in deals and cost savings for you. When you pay your customers by means of virtual card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Enhance Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and consume many resources to manually read more remedy. With payment automation, you see where, when and why issues transpired. Contrary to the manual method, with automation you’ll have the ability to methodically address and get rid of mistakes to enhance quality.
A/P payment automation can save you cash, earn you additional profit, reduce the risks of fraud, get your operations increased transparency, meet the customers’ needs, and enhance the overall quality of your A/P processes.