Although technology has made Accounts Payable (AP) payment automation a standard for many organizations, 60% of businesses in the United States are not aware of the countless benefits of AP automation.
Leveraging software applications empowers you to apply the process in a manner that is seamless and effortless.
Here Are Our Top 5 Reasons To Automate:
- Cash Optimization
Accounts Payable automation allows AP to project its pending cash requirements accurately — eliminating guesswork. With greater transparency in our payment portal, OnPay Connect, visibility into the process allows your AP department to focus on activities and priorities that will affect your department with value add activities.
- Strengthen internal controls
A manual AP process is susceptible to fraud, especially ACH and Wire Transfer Fraud. You increase the risks of human error, late payments, missing invoices, and the dreaded rush invoices. An automated AP process embeds controls that prevent and deter fraud.
- Optimize Visibility
The outdated manual process suffers from a lack of visibility, which can result in neglecting to recognize a portion of liabilities. This can understate expenses and therefore overstate income, which can cause accounting and reporting irregularities and ultimately fraud. AP automation delivers a complete audit trail of every step in the process and allows management to resolve potential problems quickly.
- Satisfy Customers
Your suppliers and vendors 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 onetime 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 AP department pivots to a revenue generator.
- Improve Quality
Avoid error, delay, and unnecessary costs with an automated AP process. AP errors are costly and consume many resources to resolve manually. 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.
AP payment automation can save you cash, earn extra revenue, reduce the risks of fraud, bring your operations greater transparency, meet your customers’ demands, and improve the overall quality of your AP processes.
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Get more information on AP automation solutions.
Originally published March 16, 2018. Updated for content and quality on May 27, 2021.