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Does the thought of accounts payable get you frazzled? Keeping track of what your business owes is one of the highest risk tasks for a business, and as a business owner, you don’t want to get this wrong.
Being prompt and accurate with payments is key to maintaining good relationships with suppliers. A good accounts payable ensures you don’t have liabilities on your balance sheet for too long.
Do you need a helping hand with managing this? Get in touch with us today to find out how we can help.
Commonly referred to as AP, accounts payable is money owed to vendors or suppliers from whom you have received a product or service from. Simply put, AP consists of everything a business is indebted to its vendors for.
Usually, AP refers to short-term obligations, things you plan to pay off within the year – ideally well within the year.
Long-term obligations – such as mortgages and other loans taking more than twelve months to pay off – are typically itemised as separate liabilities and aren’t included.
As a business, it is crucial to manage your accounts payable effectively and efficiently, to maintain confidence when it comes to responsibility over your debts.
Managing your AP efficiently is critical to the long-term success of your business and is vital to reducing the risk of exposure to fraudulent activity and costly payment errors.
The demands of a growing business often means that establishing a robust AP system, managed by well-trained, trustworthy and knowledgeable staff can often be overlooked.
AP teams are responsible for handling a range of demands. This could include rushing a single urgent payment through to having to drop everything to push a monthly payment run out.
The accounts’ payable function is more than processing supplier invoices, it also includes:
A successful AP team will go further, using their skills and experience to maintain detailed, accurate records using well designed systems and procedures.
They will collaborate with a business’s financial controller to mitigate the risk of payment errors or fraudulent activity.
Managing your accounts payable process efficiently is one of the most important functions of a business.
Poor AP practices can make it impossible to gain any real understanding of your business’s financial health, impacting investment decisions and applications for finance. Missed or late payments can lead to late fees and interest and can also cause extensive damage to your brand.
Having a reliable AP system in place can prevent such occasions from occurring. If you are experiencing this or need a hand -we’re here to help!
Our systems are built around online accounting software and well-established procedures to produce results and efficiency when it comes to your AP processing. The AP team will work with you ensure invoices are received and processed accurately based on a strategy of optimising working capital and maintaining great vendor relationships.
Get in touch with us today to find out how we can help!
Outsource your bookkeeping and HR by enlisting the professionals. Get in touch with us today so we can help make accounts payable as smooth as possible for you.
