Top Reasons Why You Should Automate Accounts Payable
Despite the fact that tech makes Accounts Payable payment automation indispensable for a number of corporations, 60 % of companies in the United States are not aware of the many benefits of A/P automation. Leveraging software to utilize the process in manner that is seamless and trouble-free, the following are our main 5 reasons why you should automate.
Cash Optimization
Accounts Payable automation lets A/P to accurately project its outstanding cash requirements, therefore removing estimation. With better transparency from A/P automation, awareness into the process allows your A/P department to give attention to tasks and things that will impact your department with value add activities.
Reinforce internal controls
A manual A/P process is prone to fraud. You raise the challenges 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.
Optimize Awareness
The obsolete manual process suffers from insufficient visibility, wherein can result in failing to recognize a segment of risks. This can understate expenditures as well as overstate income, which could contribute to accounting and reporting irregularities and ultimately fraud. A/P automation produces a complete audit trail of each part of the method, and allows management to rapidly deal with possible difficulties.
Please Clients
Your vendors would like a more effective payment method. More efficient payments result in savings and cost savings for you. If you pay your clients via virtual card, which is a single issued 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 profit generator.
Improve Quality
Avoid error, delay, and avoidable costs with an automated A/P process. A/P mistakes may be very costly and take many resources to manually clear up. With payment automation, you see where, when and why issues transpired. Contrary to website the manual method, with automation you’ll have the ability to systematically address and eliminate errors to boost quality.
A/P payment automation will save you cash, earn you additional earnings, reduce the risks of fraud, provide your operations more transparency, fulfill your customers’ needs, and enhance the overall quality of your A/P processes.