Top Reasons to Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation simple for numerous businesses, 60 percent of businesses in the United States do not know of the many benefits associated with A/P automation. Leveraging software programs to apply the method in manner that is seamless and trouble-free, the following are our major 5 reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash specifications, accordingly eliminating speculation. With better transparency from A/P automation, awareness into the process allows your A/P department to focus on tasks and priorities which will impact your department with value added activities.
Reinforce internal controls
A manual A/P method is vulnerable to fraudulent activity. You multiply the risks of human oversight, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The obsolete manual method is affected with lack of awareness, through which can result in failing to recognize a segment of risks. This can understate expenditures as well as overstate income, which could result in accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation delivers a whole audit trail of every step in the process, and makes it possible for management to quickly handle possible problems.
Your vendors want a more beneficial payment process. Easier payments result in deals and cost savings for you. If you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P problems are costly and consume many resources to manually solve. With payment automation, you can see ap solutions where, when and why mistakes happened. Unlike the manual process, with automation you’ll be in a position to methodically address and get rid of mistakes to enhance quality.
A/P payment automation can save you cash, earn you extra cash, lessen the risks of fraud, bring your operations more transparency, fulfill your customers’ demands, and advance the total quality of your A/P processes.