Top Reasons Why You Should Automate Accounts Payable
Despite the fact that modern technology has made Accounts Payable payment automation a standard for many organizations, 60 percent of businesses in the US are not aware of the numerous advantages of A/P automation. Leveraging software programs to apply the method in manner that is seamless and effortless, the following are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its outstanding cash specifications, therefore eliminating uncertainty. With greater transparency from A/P automation, awareness into the process allows your A/P department to deal with tasks and things which will impact your department with value added actions.
Improve internal controls
A manual A/P method is susceptible to fraudulent activity. You raise the risks of human oversight, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraud.
Improve Exposure
The obsolete manual method is affected with lack of awareness, by which can result in neglecting to recognize a part of liabilities. This could understate expenses as well as overstate income, that may cause accounting and reporting abnormalities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the method, and permits management to swiftly fix potential troubles.
Please Customers
Your suppliers prefer a more beneficial payment method. Easier payments result in discounts and savings for you. When you pay your customers via virtual credit card, which is an individual issued credit card for a one-time use, you generate monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Avoid error, delay, and needless costs with an automated A/P process. A/P problems can be very expensive and consume many resources check here to manually resolve. With payment automation, here you will see where, when and why mistakes transpired. Unlike the manual method, with automation you’ll be able to systematically address and get rid of issues to improve quality.
A/P payment automation will save you cash, earn you additional income, decrease the risks of fraudulent activity, provide your operations greater transparency, meet your customers’ demands, and enrich the overall quality of your A/P processes.