We all know that accounts payable can be a tricky department. Since you never want to be the company that can’t seem to get their accounts payable department under control, here are 3 things you should know about this important component of business finance.
Businesses Are Going Digital
Large metal filing cabinets in the office and cluttered closets full of paperwork are now a thing of the past. Thanks to the modern advancements of internet technology, business owners are finding it easy to go digital in order to keep organized and increase efficiency.
Invoices Should Be Processed in a Timely Manner
You should always try to process invoices in a timely manner as this will prevent errors due to you forgetting or some other kind of complication. Also, if a problem does arise, you will be able to address it right away with the vendor. Typically, invoices should be processed within two days of receipt and a date stamp should be applied once it is completed. If you want to save you and your employees time, you should consider letting an accounting software handle the processing of invoices for your business.
Prepare to Pay Fees
The banks want their piece of the pie too, which is why they often charge businesses a nominal fee in order to process payments or invoices. When calculating costs, be sure that you are taking these fees into account as they can add up as you business grows. In order to minimize the amount being paid to banks, it’s important to ensure that you are using the most affordable payment option for your business. If not, it’s time to switch.
Now that you know these 3 things about accounts payable, you should have the confidence you need to expand your business knowing that your company can handle the increased workflow.
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