Top Reasons to Automate Accounts Payable
Even though modern 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 to implement the process in manner that is seamless and convenient, listed here are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, accordingly getting rid of speculation. With greater transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities that will impact your department with value add activities.
Enhance central controls
A manual A/P process is prone to fraud. You raise the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
Boost Visibility
The outdated manual practice is affected with lack of visibility, in which can result in failing to recognize a portion of liabilities. This may understate expenses and therefore overstate earnings, that may lead to accounting and reporting irregularities and ultimately fraud. A/P automation delivers an entire audit trail of each and every step in the process, and lets management to quickly handle possible problems.
Satisfy Customers
Your suppliers want a more beneficial payment process. Easier payments result in special discounts and cost savings for you. When you pay your customers by means of virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s mutually beneficial accounts payable automation for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a revenue generator.
Enhance Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P problems are expensive and consume many resources to manually remedy. With payment automation, you see where, when and why issues transpired. In contrast to the manual method, with automation you’ll be able to methodically address and reduce problems to boost quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraudulent activity, provide your operations more transparency, fulfill your customers’ needs, and advance the total quality of your A/P processes.