As a small business owner, you have a lot of tasks to juggle to keep your company running smoothly. Accounts payable process improvement helps to make your job a little easier by allowing you to pay vendors and work on revenue-generating tasks. Continue reading for five tips for managing accounts payable.
Create Accounts Payable System
To create an accounts payable system, record each invoice using the same method in your books. Next, set up a system for accounts payable and track your unpaid invoices. Be sure to make it clear who you owe money to, how much you owe, and the due date for each payment.
Be on the lookout for discount opportunities, such as early payment discounts in vendor invoice payment terms. Some vendors may take money off your total bill if you send early payments, and these discounts can add up over time! Before sending these payments early, double check your bank account to ensure your business will have enough left over to operate efficiently.
To stay on top of all of your payments, it’s crucial to have reminders for approaching invoice due dates. The last thing you want is to have a late payment, so whether you prefer to write it down in your planner or use an app on your phone or desktop, set up alerts for when payables are due. Continue to regularly check payable due dates to stay on top of any changes.
You don’t want your vendors to have a difficult time finding you, so be sure to keep your contact information updated. If your phone number, email address, or address changes, it’s important to ensure your website, business card, and other public listings have the correct information.
A good small business owner should always be working to maintain strong relationships with their vendors. If you have a solid relationship and pay on time every month, they may be more willing to help you if there is an instance where you won’t make a payment on time. If this ever happens, it’s best to be honest and talk with your vendor to negotiate payment terms, as they may be able to offer you a payment plan and pay back the money owed in installments.
Trust the professionals at the Harding group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, QuickBooks training, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.