Top Reasons Why You Should Automate Accounts Payable
While tech makes Accounts Payable payment automation simple for many organizations, 60 % of organizations in the USA are unaware of the countless advantages of A/P automation. Leveraging software applications to implement the process in manner that is seamless and easy, here are our major 5 reasons to automate.
Cash Optimization
Accounts Payable automation enables A/P to accurately project its outstanding cash specifications, consequently getting rid of uncertainty. With increased transparency from A/P automation, visibility into the system allows your A/P department to concentrate on tasks and priorities that can impact your department with value added activities.
Enhance internal controls
A manual A/P method is at risk of fraud. You add to the issues of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraud.
Maximize Exposure
The obsolete manual method is affected with insufficient visibility, wherein can result in failing to realize a portion of liabilities. This may understate expenses thereby overstate revenue, which can cause accounting and reporting abnormalities and ultimately fraud. A/P automation provides a whole audit trail of each and every step in the process, and more info enables management to rapidly deal with possible issues.
Satisfy Clients
Your suppliers want a more beneficial payment process. Easier payments result in discount rates and savings for you. When you pay your customers by means of 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 clients benefit from more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Improve Quality
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P errors are expensive and use up many resources to manually remedy. With payment automation, you can see where, when and why issues occurred. In contrast to the manual process, with automation you’ll be in a position to methodically address and get rid of mistakes to improve quality.
A/P payment automation can save you cash, earn you additional profit, decrease the risks of fraud, bring your operations better transparency, fulfill your customers’ needs, and advance the total quality of your A/P processes.