Top Reasons to Automate Accounts Payable
Even though modern technology makes Accounts Payable payment automation simple for a number of corporations, 60 % of corporations in the United States are not aware of the many advantages of A/P automation. Leveraging software programs to utilize the process in manner that is seamless and easy, here are our top five reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its pending cash specifications, therefore getting rid of estimation. With increased transparency from A/P automation, visibility into the system allows your A/P department to give attention to tasks and priorities which will effect your department with value add activities.
Enhance internal controls
A manual A/P method is susceptible to fraudulent activity. You raise the threats of human oversight, overdue payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
Optimize Visibility
The outdated manual method suffers from lack of visibility, by which can result in neglecting to recognize a portion of click here risks. This can understate expenditures thereby overstate revenue, which could cause accounting and reporting abnormalities and ultimately fraud. A/P automation offers an entire audit trail of each part of the method, and allows management to quickly fix potential issues.
Satisfy Clients
Your vendors prefer a more efficient payment process. Easier payments result in discount rates and cost savings for you. If you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your get more info clients experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Enhance Quality
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and consume many resources to manually clear up. With payment automation, you see where, when and why errors occurred. Contrary to the manual method, with automation you’ll have the ability to systematically address and reduce problems to enhance quality.
A/P payment automation will save you cash, earn you extra profit, decrease the risks of fraud, get your operations more transparency, satisfy your customers’ needs, and improve the overall quality of your A/P processes.