Top Reasons Why You Should Automate Accounts Payable
Although technology has made Accounts Payable payment automation a standard for numerous corporations, 60 % of corporations in the US do not know of the many benefits of A/P automation. Leveraging software applications to apply the method in manner that is seamless and trouble-free, the following are our major five reasons why you should automate.
Cash Optimization
Accounts Payable automation allows A/P to correctly project its pending cash requirements, consequently getting rid of 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.
Improve internal controls
A manual A/P method is subject to fraudulent activity. You multiply the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
Maximize Exposure
The outdated manual practice suffers from insufficient visibility, by which can result in neglecting to acknowledge a segment of risks. This could understate operating expenses thereby overstate revenue, which could result in accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation provides an entire audit trail of each part of the method, and permits management to promptly handle possible difficulties.
Please Customers
Your suppliers want a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. If you pay your customers by means of virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash rebates. It’s equally good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Improve Quality
Prevent error, delay, and pointless costs accounts payable solutions with an automated A/P process. A/P problems may be very costly and consume many resources to manually fix. With payment automation, you see where, when and why faults occurred. In contrast to the manual process, with automation you’ll have the ability to methodically address and get rid of problems to increase quality.
A/P payment automation will save you cash, earn you additional profit, lessen the risks of fraudulent activity, get your operations more transparency, fulfill your customers’ get more info demands, and improve the overall quality of your A/P processes.