Insights

So, AP kicking your tail? Hard to keep up with the bills, the due dates, the changes in pricing?  

Here are my favorite accounts payable tips to make this part of your business easier:

GO PAPERLESS

Most vendors offer an option to email your invoices – so take them up on it.  It’s a faster and easier way to keep track of your vendor invoices.

AUTOMATE PAYMENTS

Many vendors – especially for recurring charges – will automatically bill you every month.  And even if they don’t offer that service, you can still easily set up recurring payments in your bank’s bill pay feature.

️ AUTOMATE INVOICE ENTRY

And, if you’re ready for an automation upgrade (and time saver), invest in something like “Bill.com”. It’ll automatically scan your invoice and fill in everything you need, from the due date of the invoice to the date of payment.

And I promise you – even though these are simple solutions, they have big benefits!

On-time payments lead to happier vendors (and more flexibility when you need an extension, or to renegotiate)

Don’t forget – the federal tax deadline is coming up on May 17th!  Is your small business’ bookkeeping up to date and ready for it?  

If you’re not sure, here are 5 quick tips on how to double-check – and get up to speed!

(1) Are your personal accounts (and expenses) mixed in your business records?

Do you have personal accounts connected to your business Quickbooks?  Or a lot of personal expenses running through your business accounts?  Both are big no-no’s!  Try to keep them separate – and make sure all personal expenses are correctly categorized as “owner’s draw” if an LLC or “Shareholder’ Distribution” if a corporation 

(2) Got a lot of negative numbers?

Now, for your loans and other liabilities, this is ok.  But otherwise, this is usually a red flag, especially when it comes to the assets for your business!  Always dig a little deeper into negative numbers to figure out what’s going on 

(3) How old are your unpaid invoices – both for clients + vendors?

There are a couple of reports you can run for this: the “Customer Balance” and the “Vendor Balance” report.  What invoices still have outstanding balances?  And how old are they?  If you’ve got a lot +90 days past due, you probably have some updating to do!

Would you like to keep more of your money in your own pocket? 

Here are 3 bookkeeping tips to help you increase your profit – and put more money in your pocket – without increasing your prices:

(1) DOUBLE-DOWN ON YOUR CURRENT CUSTOMERS

Did you know that it’s 5 times MORE expensive to get a new client, rather than just to keep your current clients happy and buying? So focus on meeting their needs and selling more to them first.

(2) AUTOMATE YOUR PROCESSES

Time is money, right? And if you get the right automation and software set up (like Zapier or QB), you can save HOURS of time.

(3) LOWER YOUR COSTS. 

Where can you bring down your operating costs (COGS)? Can you find cheaper suppliers, or get wholesale rates? Can you spend less on shipping or incur fewer expedite fees? 

(Also, you can just pick up the phone and see if your vendors are willing to give you a discount or special offer for your business. Especially those you have been with for some time!)

Not too hard

… But I do admit – some of these do take a little time to chase down or set up.