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Top-line sales growth can conceal a lot of problems-sometimes too well. When you are managing a growing company, you have to watch expenses carefully. Don't be lulled into complacency by simply expanding sales. Any time and any place you see expenses growing faster than sales, examine costs carefully to find places to cut or control them. Here are some more tips for using cash wisely: • Take full advantage of creditor payment terms. If a payment is due in30 days, don't pay it in15 days. • Use electronic funds transfer to make payments on the last day they are due. You will remain current with suppliers while retaining use of your funds as long as possible. • Communicate with your suppliers so they know your financial situation. If you ever need to delay a payment, you'll need their trust and understanding. • Carefully consider vendors' offers of discounts for earlier payments. These can amount to expensive loans to your suppliers, or they may provide you with a change to reduce overall costs. The devil is in the details. • Don't always focus on the lowest price when choosing suppliers. Sometimes more flexible payment terms can improve your cash flow more than a bargain-basement price.
Below are 5 tips to help you successfully manage your accounts payable:
1. Simplify Your Accounts Payable Process
2. Use Technology
3. Reduce Accounts Payable Fraud
4. Vendor Terms May Be Negotiable
5. Reduce CFO Impact to Verification & Signature
In the first intant set terms of payables according to your own cash inflows.2nd increase rocoveries.3rd increase revenue. etc
Accounts payable, located on a company's balance sheet, are what the company owes its suppliers or the vendors from which it buys its inventory and other supplies. Accounts payable are a current liability and they are listed on the right-hand side of the balance sheet.
If you have a set of best practices in accounts payable management and you follow them, accounts payable can have quite a positive impact on your company's profitability.
5 ways to manage a successful Accounts payable:
Simplify Your Accounts Payable Process
Use Technology
Reduce Accounts Payable Fraud
Vendor Terms May Be Negotiable
Reduce CFO Impact to Verification & Signature