For all companies, especially those that are in full growth, it is very important to be able to maintain healthy finances, which allow them to carry out the operation properly. And in order to keep the company’s numbers in good condition, various factors come into play, one of them is the correct management of accounts payable.
Having good management of the company’s accounts payable will make it possible for it to: Make invoice payments in a timely manner, thus avoiding the generation of unnecessary interest; maintain adequate cash flow and have a good relationship with the various suppliers of the company. Even the latter can help to obtain better payment conditions, which is undoubtedly beneficial for the organization.
For all the above, it is very important to have a good management of accounts payable, so that positive impacts are generated both in the finances of the company, and in the operation of the company in general.
At getyooz.com we are committed to providing you with information and solutions that help your company stay in constant growth to be highly competitive. Therefore, this time we want to share some important recommendations so that you can properly manage your accounts payable and maintain good financial health in your organization, as well as a cordial relationship with your suppliers.
Improve your Accounts Payable Management with 8 Tips
Here are some tips that may be useful to improve the management of your company’s accounts payable:
1. Keep a Balance Between your Income and Expenses
From the outset, this point may sound quite obvious, however, it is important to always keep it in mind and ensure that the level of expenses is not higher than that of income received by the business. This in order to maintain healthy finances and avoid accumulating too many debts in the future to such an extent that the management of accounts payable gets out of hand, it is impossible to pay them and therefore other serious consequences such as the cessation of operations arise of the business.
2. Choose your Suppliers Beyond Price
When choosing the suppliers that a company wants to work with, most of them can get carried away by the price factor. However, it is advisable to take into account the different payment conditions offered by each one, since having more flexible conditions may be more useful than having lower prices.
3. Take Advantage of the Payment Terms offered by Suppliers
And organize the payment of your invoices based on the above, so that you can give priority to those that have a closer term to expire.
4. Maintain Good Communication with your Suppliers
It is possible that on some occasion your company may not be able to pay an invoice on time. For this type of case, it is suggested that you notify the provider in advance and expose the situation, so that you can negotiate another payment date.
5. Seek to Negotiate your with Suppliers to Obtain Discounts for Advance Payment
Paying early, when you have the possibility, not only contributes to a good relationship with suppliers, but also gives you the opportunity to obtain discounts for prompt payment, which can positively impact cash flow.
6. Check that your Suppliers Meet their Commitments
It is recommended that you confirm that each of your suppliers is complying with the previously agreed commitments in a timely manner. For example, that certain products are delivered on the established date, in the requested quantity and in good condition, otherwise make the corresponding return or claim.
7. Set Alerts or Payment Reminders
Which help you to always keep in mind the dates on which you must carry out the corresponding transactions of the various invoices. These do not have to be physical, but some technological tools give you the opportunity to have them digitally and automatically.
8. Automate and Standardize the Management of Accounts Payable
That is, it keeps track of cost and expense invoices, this in a standardized way. It is also advisable to manage these invoices by cost centers and projects for greater ease.
Fortunately today at this point you can support yourself with ERP software, which in addition to helping you in the above, can be very useful for other important activities of accounts payable management, such as controlling your travel expenses and work team, for the establishment of policies for the review and control of accounts payable, to streamline the process of bill payment authorizations, among others.