Any business using a manual Accounts Payable (AP) system is not safe from payment fraud. Manual processes consolidate all payment responsibilities to one person, increasing fraud risks. They also result in tactics such as money mulling, overcharging, and compromised business emails going undetected. AP automation provides your firm security and simplicity through scalable payment controls.

Read on to learn how AP automation lowers business risks.

Creates Controls in the AP Process

Automating AP creates payment controls that protect your company from fraud and hackers. Below are some of the controls and how they lower business risks.

Duties Segregation

AP automation uses the concept of checks and balances to control power. It sets up separate roles for approvers, managers, and authorizers to warrant power control in the organization. The separation of power in a business blocks internal fraud by blocking any unauthorized payments.

READ MORE:  How do you create a personal logo

Dual-factor Authentication

This authentication adds another security layer by requiring employees involved with AP to use a unique security code every time they release funds. The code is sent through email or text and keeps track of workers that initiate every payment. This helps to hold them accountable in case of an error and aids investigations in case of fraud.

Positive Pay Files

Automation allows you to use positive pay files—an automated cash management report that deters fraud. Positive pay files consist of a daily list of checks your firm has issued to different banks. This enables you to confirm that every check payment the business makes is authorized.

READ MORE:  Most important types of secured loans in India

Makes It Easy To Shift From Paper Checks

Automation provides access to various electronic payment methods, such as the built-in virtual card payment option. Virtual cards are a digital payment method that provides secure payment options, preventing potential compromises on your data.

Automating accounts payable processes allows you to transition from risky payment methods such as wire and check payments. Safe payment options built into AP automation systems allow you to make payments with a lower risk of fraud.

Standardization and Easy Onboarding

Digitalizing accounts payables facilitate clear communication and standardization of processes. It makes data accessible to all employees in a different location, situating that everyone is aware of all accounts’ financial status. This makes the payment process transparent and verifies data accuracy across supply chain systems. For example, suppliers receive accurate information, and all transactions are made openly, closing any chance of fraud.

READ MORE:  How To Make The Most Out Of Your Next Heating Maintenance Service

The automation process also makes onboarding easy for the AP department and lowers the risk of errors caused. Training employees to use the automated system is easy and results in accuracy. This lowers the risk of new employees making double payments and delaying or missing payments.

Detects Irregularities With AP Automation

A modern AP system efficiently reviews supplier data and PO matching to detect irregularities. It makes it easy for you to detect any attempts by your AP team to avoid tax or commit fraud. The system updates you in the event of data inconsistencies and guides you to make the proper follow-up.

READ MORE:  Glimpse at the diamond brush cutters

An automated system also helps make international commerce transparent. It makes it easy to calculate international differences, thus closing any chances of fraud or errors. With digital AP processes, your firm keeps track of all global commerce, detecting any irregularities on time.

Keeps Up With Regulatory Changes

AP automation solutions update your system on regulatory changes such as tax increases. Updated information is a preventative measure that can help you avoid fines that may otherwise damage your company’s reputation.

With an automatic system, your AP team does not need to update your systems manually; everything happens automatically. This allows them to focus on other strategic tasks, such as explaining the impacts of regulatory changes on your company’s C-suites.

READ MORE:  How do you choose the logo icon

Automate Your Accounts Payable Processes

Automate your AP systems to transform accounts payable from a source of fraud and inefficiencies into profit centers that provide visibility in your business. Automation controls your AP processes through systems such as dual-factor authentication and duties segregation. This holds everyone on your AP team accountable and discourages any form of errors or fraud.

AP automation also mitigates other business risks such as tax evasion. Digitized AP systems automatically update you in case of regulatory changes, such as tax increases.

RELATED POSTS
{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}