Accounts Reconciliation Blog

It is always good to follow certain protocols in order to ensure a smooth flow of transactions especially when financial transaction is involved. Ensuring that your accounts payable are properly managed will allow your business to gain a good financial position. It is therefore important that accounts payable procedures are in place and strictly being implemented. These could help your business in establishing good relationships with your suppliers and creditors.
You can make use of effective strategies in drafting your accounts payable procedures:

~ERP (Enterprise Resource Planning) – automation of purchases and payables thus cutting on operating cost
~Take payment discounts – paying before the arranged due date usually entitles you to a certain percentage of discount
~Eliminate paper – try to maintain records in soft copy (like PO, invoices… ) can reduce handling cost by almost 90%
~Review purchases with regard to cost, changes in environment or changes in industry
~Communicate with suppliers your desire to improve the process like exchanging documents electronically
~Reduction of errors – focus on verification and authentication of documents and avoid overpayments
~Training of personnel – regular formal training can help them be more knowledgeable on frauds and they can improve their negotiation skills
~Increase payment terms – base this on the date of receipt of goods
~Elimination of disputes – thoroughly review purchasing procedures to eliminate disputes