Perhaps, accounting might not be as exciting as participating in a thriller road race. But it is undoubtedly not a monotonous occupation. Information from the accounting team helps business leaders make strategic decisions and maximize profits. Despite the general dislike in handling Accounts Payable (AP), it is an essential part of the business that can make a difference and contribute to your bottom line.
Here’s a look at some of the best ways to handle Accounts Payable and make it more engaging for the business.
What are Accounts Payable?
Accounts Payable or AP is any short-term debt owed by a company to creditors or suppliers. The role of an accountant is not just to record the AP bust also keep track and ensure they don’t go unpaid or attract penalties.
The best accounting firms in Singapore don’t handle AP like any other mundane bookkeeping role. They help you to create or identify and capitalize on opportunities to make the business prosper. Accounts Payable may seem tedious, but when handled correctly, it transforms into an exciting area of accounting. Here’s how.
Use it to Review Supplier Relationships
Kahneman and Tversky’s theory on behavioral economics revealed that economic decisions are driven more by emotions than logic. The same applies to your business and how you relate with suppliers and vendors’ matters.
Excellent relations with key vendors will open up opportunities to negotiate for better terms and bigger discounts.
The best accounting firms in Singapore will not just give you an update on what to pay and when it is due. You’ll get objective insight on which suppliers to pay earlier (and secure discounts) as well as which vendors to negotiate for better credit terms and which ones to drop.
Track AP Using Software
With plenty of tasks to juggle in your business, your ability to keep track of multiple dates and deadlines can be limited. This is where outsourcing and automating some business functions can come in handy.
Choosing outsourced accounting services in Singapore will enable you to integrate the best accounting software in your business. It will free your mind, and calendar, from mundane dates while keeping up with the complexities of business.
Automated tracking of accounts payable enables on-time payment and you can project upcoming expenditure more accurately. It helps you to plan your cash flow accordingly.
Generate and Review Reports Regularly
Technology doesn’t just enable accurate tracking, but you can also generate informative reports from your Accounts Payables. You can make informed decisions and chart the best course of action concerning the accounts payables and the business in general. Such statements will also enable you to identify and eliminate bottlenecks from your supply chain as well as processes.
These insights and exciting ways of handling Accounts Payables may be too much for an in-house accounting team or a part-time accountant. It’s certainly not viable for entrepreneurs who do their own bookkeeping. Outsourcing to a reputable accounting company in Singapore will help you avoid the frustration and expense of handling Accounts Payables. But you will make the most of the exciting part.
