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How to improve Accounts payable process


1. Go paperless when possible

Some vendors give you the option of receiving a paper or electronic invoice. Encourage your suppliers to email invoices to inform them that they need to do so.

Electronic bill accounts can make the payment process easier. You do not have to wait on mail to receive a bill. Plus, paper invoices can be easily lost or damaged. Online billing helps you avoid late payment due to lost hard-copy bills.

When possible, set online payments for your regular sellers, you will need information such as account number, contact information, and outstanding balance. With online billing, you can manage payments from your phone or computer, you do not have to worry about purchasing by hand or by post

Once you receive an online invoice, you can import it into your accounting software. You can also scan and upload paper invoices in the software so that all your bills are in one place

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Place your invoice in a central location where you can easily find them. Order invoice by priority and date, for example, arrange the bills of dates that are far away from the nearest due dates. 2. Let your accounts workflow process payable Repetition is an efficient accounting process important to pay. When you pay it, set a standardized system to manage invoices from the time you receive the bill AP aging report shows the list of vendors on the left, the following columns show how many old invoices are from left to right, "current," "due to the past 1-30 days," "due to the last 31-60 days" Is labeled, and so on. The total amount of each line is listed in the previous column. To determine dates of invoices, use old accounts of accounts to report accounts. An AP Aging Report helps you to see which vendor payments are before their due dates.

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3. Set up reminder Take an active approach to adjusting the accounts payable. It can be easy to forget about the payment and some invoices leave through cracks. By setting a reminder, you can take care of the bills before your due dates Reminders help you estimate costs Use a calendar to manage invoice due dates and set up alerts, which will automatically tell you when near a certain date.

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4. Store Your Data Always try to keep your data in arrange track always yours bill and try to have your bills in soft copy

By saving these types of documents, you can make the right payment for the invoice. You know when you have to pay bills, who is to pay, how much to pay and what you are paying for, answer these questions by answering these documents and filing your small business tax return.

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