Why Hire an Experienced Accounting Service?
Accounts Payable (AP) refers to the outstanding amounts a business owes to its suppliers for goods and services received on credit. This liability represents a crucial component of a company’s short-term financial obligations.
To manage AP effectively, accounting services providers utilize sophisticated accounting software to accurately calculate and record the total outstanding amounts. These amounts are detailed on the business’s balance sheet under current liabilities, providing a clear snapshot of the company’s short-term financial commitments.
Additionally, fluctuations in Accounts Payable are meticulously tracked and reported in the cash flow statement. An increase in AP can indicate a company is optimizing its cash flow by extending payment terms, while a decrease might reflect efforts to reduce outstanding debts. Properly managing AP is vital for maintaining supplier relationships, optimizing cash flow, and ensuring financial stability.
Business owners must closely monitor their Accounts Payable expenditures. If these costs spiral out of control, they can negatively impact the company’s cash flow and assets. To mitigate this risk, a seasoned accounting services provider like Staunch Fintech implements robust internal controls and efficient accounts payable processes. Here is a list of common accounts payable expenses:
- Transportation costs
- Charges for phones, & mobiles
- Charges for logistics
- Rental costs
- Cost of raw materials
- Licensing fees
- Paymens for utilities, power, and fuel
- Subcontracting services
How Accountants Process Your Accounts Payable?
In today's business landscape, many owners opt for outsourced bookkeeping and accounting services rather than maintaining an in-house accounts payable department. Our skilled accountants manage this process by intercepting and handling all accounts payable invoices received from your suppliers, ensuring timely and accurate payment processing.
Accounting services relieve you of financial, administrative, and clerical tasks. They efficiently manage your accounts payable process, saving you both time and money. This allows you to focus on the core goals and objectives of your business.
Accurate Payments
They handle data entry, approval, payment, and reconciliation of invoices. They adhere to your payment process and ensure that only valid and accurate bills and invoices are paid.
Updated Balance Sheet
They consistently update your balance sheet to accurately reflect the total amount of accounts payable. This allows you to track how much you owe to suppliers and aids in planning your expenses to ensure you stay within your budget.
Avoid Late Fees
The accountants employed by these providers are highly proficient in the accounts payable process and are adept at timing payments to suppliers. They ensure that your outstanding invoices are paid well within their due dates, effectively preventing any late fees.
Supplier Relationship
By managing payments effectively, they help you avoid unpleasant situations with your suppliers and maintain strong relationships. Consistently timely payments enhance your credit reputation with your suppliers.
Brand Image
Credibility is vital. Accounting services improve your brand image, potentially leading to better payment terms, credit lines, and supplier discounts. This boosts profits and optimizes cash flow.
Optimised Cash Flow
Our accountants optimize your cash flow by taking advantage of supplier discounts for early payments. They employ a range of payment methods to retain funds in your business for as long as possible, including paper checks, online payments, and credit or debit cards, which also help you earn cash-back rebates.
Save Money
Accounting services help you gain better control over your business's cash flow. Their expertise in the process allows them to expertly save every penny, even while making payments to suppliers.