Three Practical Ways To Manage Your Accounts Payable

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When you own or operate a business, it is vital that you keep up with your accounts payable.  Not doing so can result in difficulty obtaining goods you need to run your business, and delinquency can damage the reputation of the business.  Paying your creditors on time can help keep you in business.  Follow these tips to manage your accounts payable to avoid delinquency.

Take Advantage of Technology

Technology can help you stay on top of your accounts payable.  Make sure that your accounting software has the ability to manage your accounts payable; if it doesn’t, upgrade your software so that you can get rid of paper ledgers and spreadsheets and maintain your accounts by computer.  You can also hire a virtual, part time accounting assistant to help with managing your accounts payable.  A part time virtual accountant will need just a few hours per week to manage your accounts.  Having someone to assist you outside of the business is also beneficial for eliminating theft from your business, which often occurs through accounts payable.  

Opt For Auto-Pay

For recurring payments, consider opting for an auto-pay function that will automatically debit the amount you owe on the due date each month.  This way, you won’t have to spend any time on managing these accounts, other than to enter the debit into your accounting software.  Utilities, mortgage and insurance companies, and other large payees often offer this feature, which helps ensure that the creditors that you must maintain each.  Make sure that auto-pays are entered accurately into your accounting software each month. 

Make Your Accounting Software Work For You

Generate a report for your available cash flow if you have to juggle your accounts payable.  With a few simple clicks of your accounting software, you should be able to determine the balances of your checking account and your credit lines.  If you must pay some of your creditors late, give them a courtesy call to let them know before the payment becomes overdue.  This can help salvage your relationship with the creditor.