Top Reasons Why You Should Automate Accounts Payable
Despite the fact that tech has made Accounts Payable payment automation a standard for many corporations, 60 percent of corporations in the US are not aware of the numerous benefits associated with A/P automation. Leveraging software to utilize the process in manner that is seamless and easy, the following are our main 5 reasons to automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash specifications, consequently getting rid of estimation. With better transparency from A/P automation, awareness into the process allows your A/P department to concentrate on activities and priorities which will effect your department with value add actions.
Reinforce internal controls
A manual A/P method is prone to fraud. You raise the risks of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraud.
The obsolete manual process is affected with insufficient visibility, through which can result in neglecting to identify a part of liabilities. This could understate operating expenses and therefore overstate earnings, which could result in 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 to quickly handle possible problems.
Your suppliers want a more beneficial payment process. Easier payments result in deals and cost savings for you. If you pay your customers with virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P here Department pivots to a revenue generator.
Prevent error, delay, and pointless costs with an automated A/P process. A/P errors are costly and take many resources to manually correct. With payment automation, you see where, when and why mistakes occurred. Unlike the manual procedure, with automation you’ll be able to methodically address and get rid of errors to boost quality.
A/P payment automation can help you save cash, earn you extra income, reduce the risks of fraud, bring your operations more transparency, fulfill your customers’ needs, and boost the total quality of your A/P processes.