If you’re a small business owner, it’s likely you handle quite a few different tasks within your company. You might be responsible for marketing and IT decisions just as much as administrative decisions such as who to hire. You’re probably in charge of the accounting and finances as well.
If this sounds like you, you might have some questions about keeping the books as well. One thing you might be wondering is how do you improve accounts payable?
It can be easy to make improvements to the accounts payable process. You can invest in new technological tools to help you, hire a bookkeeper, review your payments process, and use best practices to make the invoice payment process easier than ever.
1. Review Your Invoice Payment Procedures
The first step to improving and streamlining your process is to sit down and review it. Are you executing the same steps twice? For example, are you inputting data in a spreadsheet first, then in an accounting platform later on? Check for redundancies in your process. Are there complicated steps you always end up doing twice over?
While some redundancies are to be expected, you should try to eliminate them as much as possible in order to enhance your invoice payment process.
Reviewing your process will let you see issues where they exist. Once you’ve identified them, you can begin taking steps to correct them.
2. Standardize Your Process
Once you’ve taken a review of your process, you should work to create it as a gold standard for how to handle invoice payments. Each and every transaction should follow this process.
Standardizing the process for accounts payable makes it much easier to follow the process and find out where there are errors, if any. It also helps to streamline the payment process since you can follow the process step by step, each and every time. Other benefits include consistency, the reduction of errors, increased time savings, and greater visibility of outstanding invoices and your overall cash flow position.
3. Switch to a Payables Platform
A payables platform can help you make payments and reconcile your payments automatically, saving you time. It can also help you lower the costs of administration.
In addition to this, an online payables platform offers added and enhanced payment options, such as paying all invoices with your credit card.
There are so many advantages to using a payables platform, you’ll wonder why you waited so long to make the change.
4. Review Your Vendors
Review your vendors to see if you are able to negotiate improved payment terms for your business, whether that includes early payment discounts or extended payment term. Structuring AP solutions with your vendors can improve your cash flow position.
5. Get Some Expert Help
Another thing you can do to enhance your invoice payments is get some help. A professional bookkeeper can assist you with your accounts payable activities. The right tools, including a good payables platform, will also help.
Streamlining your accounts payable process will help you ensure all of your vendors get paid on time and correctly each and every time.
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.