3 Tips Success In Managing Your Account Payable
No matter what type of business you run on either nonprofit though, paying bills is a big part of doing business. If you can not pay your bills effectively, then chances are that your business will not work.
All businesses have bills to pay. For small businesses, their bills are usually handled by only a few staff members. But what about medium-scale businesses and higher?
Businesses from middle scale to higher usually have thousands of bills per month. But if you can establish a procedure for account payable management and follow the procedure well, you can put your company on a strong financial footing and earn more money. By applying best business practices, you can streamline the payable account process and prepare for future business growth.
Success Tips Managing Account Payable
#1. Avoid duplicate payments
It may sound easy and simple but in fact there are still many people who make this mistake especially for those who do it their business manually. Here are some tips that can help you avoid duplicate payouts for your business.
- Always use invoice number
Most vendor bills always have a unique invoice number assigned to each transaction. Record the number of the bills or better yet, keep the invoice.
- Never pay from a statement if you have an invoice
Some suppliers may send statements at the end of the month to summarize invoices billed to you. Compare the first invoice you have with the statement sent by your supplier.
#2. Paying bills on time
Paying bills on time may also sound easy but this is not something that can be looked down upon. For some reason, paying bills on time is very important. Here are some reasons for this
- To avoid penalties and late payment fees
Some suppliers will charge a penalty or late fee if you are late paying your bill. Although not much, but if allowed this fee can accumulate quickly.
- To defend the good credit
Another downside if you pay late is you can damage your good credit rating with your suppliers. If your credit rating is not good, you are unlikely to be allowed to credit at your suppliers again.
#3. Using accounting software
In the past, businesses rely on ledgers, invoicing papers, billing reports, checks and postal services to manage their account payable. The process is boring and very inefficient. But with the help of accounting software, you can revolutionize the way you do business. Regardless of how you manage your account payable, applying the use of an accounting software will greatly help your business.
One of the accounting software you can use is Acumatica Cloud ERP. With Acumatica account payable, you can automate invoice receipts from your suppliers and subcontractors. With Acumatica Account Payable, you can ensure timely and accurate payments to each creditor so as to maintain a good relationship between you and the creditors
The main benefit of Acumatica Account Payable
- Attach documents to invoice
- Calculates taxes automatically
- Simplify invoice approval and payment
- Optimize for payments
- Accelerate the process with fewer errors
- And many more.
If you want to know more about Acumatica Cloud ERP and how this software can help you manage your account payable? Call us at (021) 53675015 or email us at firstname.lastname@example.org.