One of the prime issues faced by the accounts department is that of fraud. It hampers the working and profitability of the business.
The accounts payable process helps improve relations with suppliers of materials required for the functioning of an organization.
Accounts payable fraud has become one of the major concerns in most organizations during the pandemic as most of the employees are working remotely. Digital payments have made the system even more sensitive without automating the accounts payable process.
To make the accounts payable process secure and streamlined, getting the AP process automated is the first step towards preventing fraud while making payments.
Ways by which AP automation helps prevent frauds:
1) Audit Trails:
Accounts payable process audit trails manually involves a lot of cross-checks of a bundle of papers to prevent frauds. Automating the accounts payable process presents an instant check of what is going out to mark suspicious activity taking place.
Whether there is any mistake in invoice checking, amount checking, vendor purchase order, or any other issue gets noticed in a short period.
2) Controlled access:
AP process usually involves greater accuracy in management. Improper system and workflow can lead to irregularities in the payments. That can result in payment fraud as one of irregularity.
Accounts payable automation can come into the picture to prevent such irregularities. AP automation not only offers security by authorizing persons for invoice access and check approvals. It also provides a system workflow that creates process flow internally.
3) Create Process workflow:
Accounts payable processes due to irregularities and time constraints are very inefficient in several businesses. Taking approvals on papers is one big task that makes the system ineffective, which results in frauds getting unnoticed.
AP automation gives the accounts payable process a system and step-by-step procedure that needs to be followed. Once implemented, it will create a workflow that will not allow any user to bypass a particular step. It helps in mitigating fraud in the AP process.
These are some of how Accounts payable automation helps in eliminating payment frauds in Businesses.
Our AP 360 automation provides 3 step control over the payment process, thus minimizing the chances of payment frauds.