Accounts payable is the aggregate amount of an entity's short-term obligations to pay suppliers for products and services which the entity purchased on credit. There are many responsibilities involved in running a business successfully, but maintaining strong control over accounts payable is among the most critical. If organization leaders do not have proper oversight of these processes, it’s possible for errors to negatively affect the bottom line and even a company’s reputation.
According to Inc. Magazine, there are a few primary reasons that supporting cash flow and cultivating positive business relationships are among the most important functions of accounts payable. If best practices are not being adhered to, it’s possible for problems such as late or duplicate payments to occur, and these errors can severely damage a company's reputation.
Source: Technologyinsight; AccountingTools
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Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.