Top Reasons to Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation a standard for many companies, 60 percent of organizations in the US are not aware of the countless benefits associated with A/P automation. Leveraging software to implement the method in manner that is seamless and trouble-free, listed here are our best 5 reasons to automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its pending cash requirements, consequently getting rid of estimation. With greater transparency from A/P automation, awareness into the system allows your A/P department to deal with tasks and priorities that will impact your department with value add actions.
Reinforce central controls
A manual A/P process is at risk of fraud. You multiply the challenges 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.
Capitalize on Awareness
The outdated manual practice suffers from insufficient awareness, wherein can result in failing to realize a segment of liabilities. This accounts payable automation could understate expenses thereby overstate income, which could cause accounting and reporting irregularities and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the process, and allows management to swiftly fix possible complications.
Satisfy Clients
Your suppliers want a more efficient payment method. Easier payments result in savings and cost savings for you. When you pay your clients via virtual card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s jointly beneficial 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 check here error, delay, and avoidable costs with an automated A/P process. A/P more info errors are expensive and take many resources to manually solve. With payment automation, you will see where, when and why issues occurred. In contrast to the manual method, with automation you’ll be in a position to systematically address and eliminate mistakes to increase quality.
A/P payment automation will save you cash, earn you additional revenue, reduce the risks of fraud, bring your operations increased transparency, fulfill your customers’ demands, and boost the total quality of your A/P processes.