Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation a standard for many corporations, 60 percent of companies in the USA do not know of the numerous advantages to A/P automation. Leveraging software to implement the process in manner that is seamless and convenient, the following are our best five reasons to automate.
Cash Optimization
Accounts Payable automation lets A/P to correctly project its pending cash requirements, therefore eliminating guess work. With better transparency from A/P automation, awareness into the process allows your A/P department to give attention to tasks and priorities that will impact your department with value added activities.
Improve internal controls
A manual A/P process is susceptible to fraud. You increase the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and deter fraudulent activity.
Increase Awareness
The outdated manual method suffers from insufficient awareness, through which can result in failing to identify a part of liabilities. This could understate operating expenses thereby overstate revenue, which can contribute to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every step in the process, and lets management get more info to quickly deal with possible issues.
Satisfy Customers
Your suppliers prefer a more efficient payment method. More efficient payments result in special discounts and savings for you. When you pay your customers via virtual credit card, which is an individual issued card for a one-time use, you earn monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Enhance Quality
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems are expensive and use up many resources to manually solve. With payment automation, you see where, when and why mistakes took place. In get more info contrast to the manual method, with automation you’ll have the ability to systematically address and eliminate problems to enhance quality.
A/P payment automation can help you save cash, earn you extra earnings, decrease the risks of fraudulent activity, provide ap solutions your operations more transparency, fulfill the customers’ needs, and enrich the total quality of your A/P processes.