Accounts Payable in Your Business

​All achievements, all earned riches, have their beginning in an idea. – Napoleon Hill

The accounts payable process (also known as A/P) or function is immensely important since it involves nearly all of a company's payments outside of payroll.  Regardless of the company's size, the mission of accounts payable is to pay only the company's bills and invoices that are legitimate and accurate.   The amount of invoices paid daily within a company will depend on the size and activity. 

Key items an Accountant should look for when reviewing invoices are:

• Rates,
• Dates,
• Descriptions and
• Quantity​

These same items are reviewed by a company's internal control group in addition to ensuring the proper approvals were received before payments are processed.  Working with accounts payable requires a great attention to detail. Each invoice needs to be verified for accuracy, billing date and payment date, and then entered correctly in the general ledger or accounting software.

​Research has identified a few tips related to accounts payable that may allow your business to run a bit smoother. 

1. ​Work from the original invoice, print only one time - avoid duplicate payments
2. Enter all invoices individually, avoid payment multiple invoices at one time - allows for research and follow-up at a later date
   
3. Look for payment discounts to save money
   

​Understanding cash flow is important for a small business.  Work to keep the processes clear and simple through the development of extensive policies and procedures.  It's never to late to set your business apart.

​Find more solutions today, Fontenot & Associates Solutions, LLC.