6/10/2023 0 Comments Azure standard accounts payableHow do your clients send money to you? PayPal? Stripe? Cash by carrier pigeon?.WOW your client with what a great vendor you are! Check the following: Invoicing your clients is an opportunity to exemplify a HIGH level of professionalism. When you’re the vendor, and you’re invoicing your clients (you become part of THEIR accounts payable process) If any of these are left unanswered, loopholes can occur that cause unneeded stress and confusion. What sort of info do you need on that invoice?.How do you engage your vendor/contractor?.The following MUST have answers and MUST be systemized in your business: When you’re the client, and you’re paying your vendors/contractors (that’s YOUR accounts payable process). Having a CLEAR SET of Standard Operating Procedures when it comes to both sides of A/P will make for an overall smooth experience that will shorten your cash flow cycle and get money to you faster. When you’re the vendor, and you’re invoicing your clients (you become part of THEIR accounts payable process).When you’re the client, and you’re paying your vendors/contractors (that’s YOUR accounts payable process). There are two sides to consider with Accounts Payable: Money cannot flow without clarity.ĭenise Duffield-Thomas said it best: “Money needs clarity.”Ĭlear standard operating procedures for Accounts Payable will help you keep a tight grip on your money, leading to a smoother experience for both clients and vendors. If you lose track of your accounts payable, you can create unnecessary roadblocks in your cash flow cycle, which can affect your overall profitability (think late fees, interest, losing relationships with quality vendors). This matters because, as mentioned above, it helps you stay organized and on top of the money going out of your business. Standard Operating Procedures (particularly when it comes to accounts payable) are extremely helpful because they help you systemize the way in which you pay your vendors, contractors, and suppliers. Why You Need Standard Operating Procedures It’s very important to keep tabs on this number to manage your cash flow effectively. It means money that you’re paying to your contractors, vendors, or your suppliers (not your employees). Read the following or watch this 30-second video:Īccounts payable (often abbreviated as A/P) refers to money that you have to pay.
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