Top Reasons to Automate Accounts Payable
Even though technology has made Accounts Payable payment automation indispensable for a number of organizations, 60 percent of companies in the United States do not know of the numerous benefits associated with A/P automation. Leveraging software programs to implement the method in manner that is seamless and easy, here are our major 5 reasons why you should automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash specifications, consequently getting rid of speculation. With increased transparency from A/P automation, visibility into the system allows your A/P department to focus on activities and things that will effect your department with value add actions.
Reinforce internal controls
A manual A/P method is susceptible to fraud. You increase the threats of human error, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The obsolete manual practice suffers from lack of visibility, wherein can result in neglecting to realize a segment of liabilities. This may understate expenses thereby overstate earnings, which can trigger accounting and reporting malfunctions and ultimately website fraud. A/P automation offers a total audit trail of every step in the process, and enables management to rapidly solve potential problems.
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Your vendors prefer a more efficient payment process. Easier payments result in deals and savings for you. If you pay your clients via virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash rebates. It’s jointly good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, seamless payments and your A/P Department pivots to a income generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P problems are costly and take many resources to manually clear up. With payment automation, you will see where, when and why errors occurred. Unlike the manual process, with automation you’ll be in a position to methodically address and get rid of problems to boost quality.
A/P payment automation can save you cash, earn you additional revenue, decrease the risks of fraud, provide your operations increased transparency, satisfy the customers’ needs, and advance the overall quality of your A/P processes.