Invoice fraud continues to cost millions of dollars for businesses every year. Accounts Payable (AP) automation can help prevent fraud, no matter the source. Businesses without anti fraud controls will tend to lose more of those with proper measures in place.
Regular Audits to Find AP Discrepancies
Automating AP procedures can help prevent fraud in many ways. Analysis tools can help figure out potential problems and issue red flags to dig deeper into the data. Here are some of the potential possibilities for fraud:
Invoices close to approval limits
Changes in vendor pricing
When businesses look for these issues, automated AP solutions can alert you before fraud occurs.
Cut Down Manual Processes
Many organizations rely much on processes that involve manual effort such as data entry. But, when manual processes are more, this would result in committing more mistakes.
The key benefits of AP automation are as follow:
Automatic invoice data entry
Centralized database for internal reviews
Analytics to forecast future accounts payable processes
Making electronic payments to vendors
Choose an AP automated system that creates a centralized process and sets rules for accounts payable and streamlines workflows. Having regular reviews and maintaining strict standards can prevent fraud and errors.
Access to AP Systems
Get fraud prevention checklist handy to help AP departments improve internal controls. AP automation software allows the accounting department to maintain separate roles in the system, so unauthorized access can be prevented. A well-defined process might prevent internal fraud by allowing the accounting department to monitor other activities. Accountants have to get their expenses approved by the management that exceeds a certain threshold. Approvers can look for invoices that fall below the approval limit and are red flagged. Automating the entire AP cycle would reduce the potential for fraud.
Some businesses think that upgrading to AP automation costs them more, but today automated AP software has become increasingly accessible even to small businesses. Consulting accounting departments when choosing automated AP solutions can help you pick the right software.
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