5 Ways to Optimize Your Accounts Payable Process

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By Paul Abrams

Topics: trending tech

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Read Time: 4 Minutes


While managing account payables might not be the most exciting part of your day, staying on top of bill payments is critical to a company’s long-term success.  Following good payment practices will optimize cash flow, build strong vendor relations, and establish a good credit rating with lenders.  Here are five ways to help improve the bill payment process in your company: 

1. Develop a Plan
The first thing you have to do is develop a plan on how and when bills are paid.  The plan should outline how payments are recorded, approved, paid, and reconciled.  But don’t stop there – “you need to plan the work and work the plan” as the old business saying goes.  Once you’ve developed the plan, it’s important that you diligently follow it too.  This will help you get into the routine of consistently paying your bills on time and staying focused on your payment priorities.    
2. Go Paperless
It’s time to go digital – and embrace the efficiencies of online accounting.  With all the accounting solutions on the market today, tracking invoices and making payments has never been easier. In addition to the convenience of being able to organize and access your invoices centrally, these platforms help reduce payment error and missed invoices.
3. Delegate Wisely
If you decide to delegate the responsibility for payment processing and approvals, be careful who you select for these roles.  Consider someone you can trust, like a senior employee who has a vested interest in the company.  Compared to a more junior employee, they are more likely to avoid errors and late payments. This will allow you to maintain a strong company reputation as well as good relationships with vendors and lenders.

4. Make Online Payments
Taking advantage of an online payment solution, like WayPay, means you can consolidate all your bank and credit card funds to make payments – domestic or international – quickly and easily from one location.  You’ll be able to automatically schedule invoice payments, obtain approvals, deploy funds to suppliers, and reconcile all your payments in any currency.

5.    Get Help
At the end of the day, if you find paying bills too much hire someone to help. A bookkeeper or accountant can help keep your accounts payable on track.  That way, you’ll be able to focus on the more exciting parts of your business.

Disclaimer

The information in this article is for educational and information purposes only and should not be relied upon for decision making. Always seek the expertise of a professional advisor or accountant prior to making any decisions.

Paul Abrams

With two decades of marketing and sales experience across both B2B and B2C organizations, Paul understands the importance of having a tight alignment between sales and marketing. Paul oversees the team responsible for the creative positioning, advertising, communications, and channel partner relationships, which all fuel the organization's exponential client acquisition strategies. In this role, he also provides expertise and best practices for sales processes, ensuring sales activities are aligned, focused, and contributing to the overall strategic plan.