Top Reasons Why You Should Automate Accounts Payable
While tech has made Accounts Payable payment automation a standard for numerous businesses, 60 % of businesses in the United States are not aware of the many benefits associated with A/P automation. Leveraging software applications to implement the process in manner that is seamless and effortless, listed here are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash requirements, accordingly eliminating guess work. With better transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and things that will impact your department with value added actions.
Strengthen central controls
A manual A/P method is at risk of fraud. You add to the threats of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
Enhance Awareness
The obsolete manual practice is affected with lack of visibility, in which can result in failing to identify a segment of liabilities. This may understate expenses and therefore overstate earnings, that may cause accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each and every part of the process, and permits management to swiftly solve possible problems.
Satisfy Customers
Your suppliers prefer a more efficient payment process. Easier payments result in savings and savings for you. If you pay your customers via virtual credit card, which is an individual issued card for a one-time use, you generate monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, seamless payments and your A/P Department pivots to a cash generator.
Improve Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P mistakes may be very costly and consume many resources to manually handle. With payment automation, you can see where, when and why problems happened. Contrary to the manual process, with automation you’ll be in a position to systematically address and reduce mistakes to boost quality.
A/P payment automation can help you save cash, earn you additional income, lessen the risks of fraudulent activity, bring more info your operations greater transparency, satisfy the customers’ demands, and enrich the total more info quality of your A/P processes.