Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation indispensable for many companies, 60 percent of companies in the USA are not aware of the countless benefits associated with A/P automation. Leveraging software programs to utilize the method in manner that is seamless and effortless, the following are our main five reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently eliminating speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and priorities that can impact your department with value add actions.
Reinforce internal controls
A manual A/P method is susceptible to fraudulent activity. You raise the issues of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
The obsolete manual method suffers from lack of awareness, through which can result in neglecting to identify a part of liabilities. This may understate expenditures and therefore overstate earnings, which can trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of every step in the method, and enables management to swiftly fix potential problems.
Your suppliers want a more beneficial payment method. More efficient payments result in special discounts and savings for you. If you pay your clients via virtual card, which is an individual issued credit card for a here one-time use, you earn monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid accounts payable automation error, delay, and avoidable costs with an automated A/P process. A/P problems are costly and consume many resources to manually correct. With payment automation, you see where, when and why issues occurred. Unlike the manual process, with automation you’ll be able to systematically address and eliminate mistakes to enhance quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraud, bring your operations greater transparency, satisfy the customers’ needs, and enhance the total quality of your A/P processes.