Top Reasons Why You Should Automate Accounts Payable
Even though technology has made Accounts Payable payment automation simple for numerous businesses, 60 percent of organizations in the US do not know of the countless advantages to A/P automation. Leveraging software programs to apply the method in manner that is seamless and effortless, the following are our best five reasons to automate.
Cash Optimization
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, accordingly getting rid of guess work. With greater transparency from A/P automation, awareness into the process allows your A/P department to give attention to tasks and priorities that will effect your department with value add actions.
Improve central controls
A manual A/P process is susceptible to fraud. You increase the pitfalls of human error, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
Enhance Awareness
The outdated manual method is affected with lack of visibility, through which can result in failing to realize a part of liabilities. This can understate expenses thereby overstate earnings, which could lead check here to accounting and reporting abnormalities and ultimately fraud. A/P automation delivers a whole audit trail of every step in the process, and lets management to rapidly resolve potential problems.
Satisfy Clients
Your vendors would like a more efficient payment method. More efficient payments result in discount rates and savings for you. When you pay your clients with virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash rebates. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Enhance Quality
Prevent error, delay, and avoidable costs with an automated get more info A/P process. A/P errors may be very costly and consume many resources to manually correct. With payment automation, you will see where, when and why mistakes occurred. Contrary to the manual method, with automation you’ll have the ability to systematically address and reduce errors to enhance quality.
A/P payment automation will save you cash, ap solutions earn you additional profit, decrease the risks of fraudulent activity, get your operations greater transparency, fulfill the customers’ demands, and advance the overall quality of your A/P processes.