Top Reasons to Automate Accounts Payable
Even though modern technology makes Accounts Payable payment automation simple for numerous corporations, 60 % of organizations in the US are unaware of the numerous benefits of A/P automation. Leveraging software applications to implement the process in manner that is seamless and convenient, listed here are our main 5 reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its outstanding cash specifications, accordingly eliminating estimation. With increased transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and things that can impact your department with value added actions.
Enhance central controls
A manual A/P process is at risk of fraud. You increase the pitfalls of human error, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Increase Awareness
The outdated manual method is affected with lack of awareness, in which can result in failing to recognize a segment of read more liabilities. This could understate operating expenses thereby overstate revenue, which can contribute to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation provides a whole audit trail of every step in the method, and enables management to swiftly solve possible problems.
Satisfy Clients
Your vendors would like a more efficient payment method. Easier payments result in discount rates and cost savings for you. If you pay your customers by means of virtual card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Improve Quality
Avoid error, delay, and needless costs with an automated A/P process. A/P mistakes can be very expensive and take many resources to manually solve. With payment automation, you can see where, when and why problems took place. In contrast to the manual method, with automation you’ll be in a position to methodically address and reduce issues to boost quality.
A/P payment automation will save you cash, more info earn you additional profit, lessen the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ demands, and improve the overall quality of your A/P processes.