How to Get Your Accounts Payable to Work for You

How would you like to lower the stress level in your business? ๐Ÿ’ต

๐Ÿ‘‰ Then letโ€™s talk about your accounts payables first.

I know, I know, itโ€™s a lot more exciting and fun to talk about your new clients and the money coming IN the door.

But one of the easiest ways to de-stress your business finances is to manage the money going OUT the door.

๐—ฆ๐—ผ, ๐˜„๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ “๐—”๐—ฐ๐—ฐ๐—ผ๐˜‚๐—ป๐˜๐˜€ ๐—ฃ๐—ฎ๐˜†๐—ฎ๐—ฏ๐—น๐—ฒ”?

This is the money that is going out of your business ๐˜ช๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฏ๐˜ฆ๐˜ข๐˜ณ ๐˜ง๐˜ถ๐˜ต๐˜ถ๐˜ณ๐˜ฆ.

When you receive an invoice, like from a vendor, that unpaid invoice is categorized as โ€œaccounts payableโ€ (basically, โ€œto be paidโ€).  Then, once that invoice is paid, itโ€™s categorized as an expense.

It can include things like utility bills, rent, and invoices from your vendors and subcontractors.  (However, payroll is not included in this classification)

What is your stress level when it comes to your accounts payable (money going out the door)?

๐—ช๐—ต๐˜† ๐—ฑ๐—ผ ๐—ด๐—ผ๐—ผ๐—ฑ ๐—”/๐—ฃ ๐—ต๐—ฎ๐—ฏ๐—ถ๐˜๐˜€ ๐—บ๐—ฎ๐˜๐˜๐—ฒ๐—ฟ?

Because it can lead to better strategies, more discounts, and higher quality service Here are the benefits of good A/P management in your business:

๐Ÿ˜„ BETTER SERVICE

Vendors that get paid on time are happy vendors.  And happy vendors are more likely to go above and beyond to give you good service and quality products.

โ˜€๏ธ EARLY PAY DISCOUNTS

Many vendors offer a slight discount if you pay your invoice early.  If you have the cash flow, why not pay less?

๐Ÿ™ˆ MORE FLEXIBILITY

Maybe you had a slow month and need to ask for an invoice extension.  Or perhaps you want to negotiate a better rate with your vendor.  In both cases, a history of on-time payments is what will make that possible!

๐Ÿ“Š CLEAR REPORTS

Things like double-payments, late fees, and refunds turn into financial reports that are much harder to understand โ€“ and, as a result, itโ€™s harder to create a profitable business strategy.

Are you ready to do what it takes to receive better service, discounts, flexibility, and clear reports?

With some good accounts payable habits, you can lower your expenses, get higher quality service, AND increase your bargaining power. 

Not bad, eh? ๐Ÿ˜‰

So, what about you? Is your accounts payable process smooth? โ€ฆ Or do you even have an accounts payable process? ๐Ÿ˜…

Check out this helpful blog below, listing some of the most common accounts payable mistakes โ€“ and some simple strategies on how you can fix or improve them! ๐Ÿ‘‡

7 Accounts Payable Problems and Solutions (kofax.com)

Are you not interested in reading a bookkeeping blog?  But REALLY want some of those sweet benefits? 

No worries ๐Ÿ˜‰ Just reach out and schedule a free call today and weโ€™ll get you taken care of!     

www.chooseabacus.comย โ€ขย info@chooseabacus.comย โ€ข (352) 432-8104

Kerry Postel โ€“ Founder CEO Principal

Abacus Business Solutions

Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.

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