Top Reasons Why You Should Automate Accounts Payable
Despite the fact that technology makes Accounts Payable payment automation a standard for many businesses, 60 percent of corporations in the United States are unaware of the many benefits of A/P automation. Leveraging software programs to implement the process in manner that is seamless and convenient, here are our best five reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash requirements, accordingly getting rid of guess work. With increased transparency from A/P automation, awareness into the system allows your A/P department to deal with tasks and priorities that can impact your department with value add activities.
Improve internal controls
A manual A/P process is subject to fraud. You multiply the pitfalls of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
Maximize Exposure
The outdated manual practice suffers from insufficient visibility, in which can result in neglecting to acknowledge a segment of risks. This can understate expenditures check here as well as overstate revenue, which can result in accounting and reporting malfunctions and ultimately fraud. A/P automation provides a whole audit trail of each and every part of the process, and makes it possible for management to quickly resolve possible issues.
Satisfy Customers
Your vendors would like a more beneficial payment process. More efficient payments result in special offers and cost savings for you. Whenever you pay your customers via virtual credit card, which is a single issued credit card for a one-time use, you will earn monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Improve Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors may be very costly and use up many resources to manually remedy. With payment automation, you see where, when and why problems transpired. Unlike the manual method, with automation you’ll be in a position to systematically address and eliminate problems to improve quality.
A/P payment automation can help you save cash, earn you additional income, decrease the risks of fraudulent activity, bring your operations better transparency, satisfy the customers’ needs, and enrich the overall quality of your A/P processes.