Top Reasons to Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation a standard for a number of corporations, 60 percent of companies in the United States are not aware of the countless advantages to A/P automation. Leveraging software to apply the method in manner that is seamless and trouble-free, the following are our top 5 reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to correctly project its pending cash requirements, therefore getting rid of speculation. With greater transparency from A/P automation, visibility into the system allows your A/P department to focus on activities and priorities which will effect your department with value added activities.
Improve internal controls
A manual A/P process is vulnerable to fraud. You increase the challenges of human oversight, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
Improve Visibility
The outdated manual process is affected with lack of visibility, through which can result in failing to realize a part of liabilities. This can understate expenses and therefore overstate income, that may result in accounting and reporting irregularities and ultimately fraudulent activity. A/P automation offers a complete audit trail of every step in the method, and enables management to swiftly solve potential problems.
Please Clients
Your vendors would like here a more effective payment method. More efficient payments result in discounts and cost savings for you. When you pay your clients via virtual credit card, which is a single issued card for a one-time use, you earn monthly cash back incentives. It’s collectively good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Improve Quality
Prevent error, delay, and avoidable costs with an automated A/P process. A/P problems may be very costly and use up many resources to manually resolve. With payment automation, you will see where, when and why faults happened. Contrary to the manual procedure, with automation you’ll be in a position to systematically address and eliminate problems to boost quality.
A/P payment automation can help you save cash, earn you additional earnings, reduce the risks of fraud, bring your operations more transparency, meet the customers’ needs, and boost the total quality of your A/P processes.