Although technology has made Accounts Payable payment automation a standard for many organizations, 60 percent of businesses in the United States are not aware of the countless benefits of A/P automation. Leveraging software applications to apply the process in manner that is seamless and effortless, here are our top 5 reasons to automate.
- Cash Optimization
Accounts Payable automation allows A/P to accurately project its pending cash requirements, consequently eliminating guesswork. With greater transparency from A/P automation, visibility into the process allows your A/P department to focus on activities and priorities that will impact your department with value add activities.
- Strengthen internal controls
A manual A/P process is susceptible to fraud. You increase the risks of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and deter fraud.
- Optimize Visibility
The outdated manual process suffers from lack of visibility, in which can result in neglecting to recognize a portion of liabilities. This can understate expenses and therefore overstate income, which can result in accounting and reporting irregularities and ultimately fraud. A/P automation delivers a complete audit trail of every step in the process, and allows management to quickly resolve potential problems.
- Satisfy Customers
Your suppliers prefer a more efficient payment method. More efficient payments result in discounts and savings for you. When you pay your customers 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, streamlined payments and your A/P Department pivots to a revenue generator.
- Improve Quality
Avoid error, delay, and unnecessary costs with an automated A/P process. A/P errors are costly and consume many resources to manually resolve. With payment automation, you can see where, when and why errors occurred. Unlike the manual process, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra revenue, reduce the risks of fraud, bring your operations greater transparency, meet your customers’ demands, and improve the overall quality of your A/P processes.
- Top 3 Accounts Payable Practices: How to Implement Them for Success
- 4 Initiatives for 2018’s Most Influential CFOs
- Accounts Payable Automation for Cost Saving and Improved Efficiency
- 6 Wastes That Kill Efficiency in Your Accounts Payable Department
- The Myths About A/P Automation