Top Reasons Why You Should Automate Accounts Payable
Although modern technology makes Accounts Payable payment automation indispensable for a lot of corporations, 60 percent of companies in the USA are unaware of the numerous benefits associated with A/P automation. Leveraging software applications to utilize the process in manner that is seamless and effortless, here are our major five reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash specifications, accordingly getting rid of guess work. With more transparency from A/P automation, visibility into the system allows your A/P department to concentrate on activities and things which will impact your department with value add actions.
Reinforce central controls
A manual A/P process is susceptible to fraud. You increase the pitfalls of human error, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraudulent activity.
The obsolete manual practice suffers from insufficient visibility, by which can result in failing to recognize a part of risks. This may understate expenditures as well as overstate income, that may cause accounts payable automation accounting and reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of each and every step in the process, and allows management to promptly correct potential problems.
Your vendors want a more beneficial payment process. Easier 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 earn monthly cash rebates. It’s collectively good for Accounts Payable and Accounts Receivable. Your clients experience check here more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are costly and consume many resources to manually clear up. With payment automation, you will see where, when and why issues occurred. Unlike the manual process, with automation you’ll have the ability to systematically address and eliminate errors to improve quality.
A/P payment automation can help you save cash, earn you extra earnings, reduce the risks of fraud, bring your operations greater transparency, fulfill your customers’ demands, and improve the overall quality of your A/P processes.