Top Reasons to Automate Accounts Payable
Although modern technology has made Accounts Payable payment automation indispensable for many organizations, 60 percent of organizations in the USA are not aware of the numerous advantages of A/P automation. Leveraging software programs to utilize the process in manner that is seamless and effortless, the following are our major 5 reasons to automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, accordingly removing guess work. With more transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and things that will effect your department with value add actions.
Strengthen internal controls
A manual A/P method is at risk of fraud. You increase the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The outdated manual process suffers from lack of awareness, in which can result in neglecting to acknowledge a segment of risks. This can understate operating expenses thereby overstate revenue, which could result in accounting and reporting irregularities and ultimately accounts payable solutions fraud. A/P automation produces a whole audit trail of every step in the method, and allows management to swiftly deal with possible problems.
Your vendors prefer a more effective payment method. More efficient payments result in savings and cost savings for you. Whenever you pay your customers via virtual card, which is a single issued credit card for a one-time use, you receive monthly cash back incentives. It’s equally beneficial for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and consume many resources to manually handle. With payment automation, you will see where, when and why mistakes happened. Unlike the manual procedure, with automation you’ll have the ability to systematically address and reduce issues to increase quality.
A/P payment automation can help you save cash, earn you extra profit, reduce the risks of fraudulent activity, bring your operations greater transparency, satisfy your customers’ needs, and enrich the total quality of your A/P processes.