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5 Tips to Guide Entrepreneurs for Managing Accounts Payable & Receivable Act
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Posted On :
Feb-15-2010
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Article Word Count :
821
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There are five different ways to improve the management of the accounts payable and receivable process. Better management process will help in bringing the organization's growth and development.
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Although it might sound very typical when big words like accounts payable and receivable are merged together in the business world but these two terms act like two sides of a single coin. Both the terms have its own sign of important and both swings in a synchronizing way. Where accounts payable explains regarding the money that the company owes to the supplier for the products or the services that the company has already received. On the other hand, accounts receivable is an act that explains regarding the billing of the customer who owes money to the company for the good and the services that have been provided to the customer.
Stating the simple definitions of Accounts payable and receivables is although very easy but in reality managing the accounting data is relatively very tough. The crucial part of handling the business is to manage the accounting information and dealing with accounting data and thereby enhancing the business' economic growth and development.
5 Important Tips for Managing Accounts Payable Services:
Entrepreneurs most of the time find that the accounts payable reconciliation services can ruin the business if it is not managed properly. If it is not managed properly then it will result into piling up the unpaid bills and which will make the vendors angry and ultimately it will destroy the business' goodwill. So, here are five major solutions to manage the accounts in an effective way:
* Make the Usage of Auto-Debit or Auto-Charge Feature:
Companies that have recurring payments they most of the time offer the auto-debit or the auto-charge services to the organizations. The amount that the organization needs to pay get automatically deducted from the business' checking accounting as per the date mentioned in the invoice. Before the deduction of the amount the vendor mails or sometimes e-mails the invoices to the organization.
* Manage the Unpaid Bills Properly:
The unpaid bills should be organized sequentially otherwise it would result in delaying the payment procedure. Maintaining the bills in a proper order will help in simpler settlement of the payments with the suppliers.
* Communicate with the Vendors in case of Late Payments:
If due to some reasons you are not in a position to pay the amount to your supplier then communicate with your suppliers openly. Suggest them a deadline by which you would be able to make the payment. However suppliers never appreciate getting payments late but they like transparency. One more good option is to hire some expert business accounting services.
* Maintain a Consistent Date for Payments:
It is a good practice to maintain a single and common date for the payment procedure. It will help you to remember the date for the payment which will help you to avoid late payments and also your suppliers would be happy.
* After Payment, File them:
Always maintain the check number, paid date and amount paid on the bill. It will help you to keep a written document which would help you to revise whenever necessary.
5 Important Tips for Managing Accounts Receivable Services:
It is important for the organization to collect the payments from the customers for the products and the services that the company has provided to the customers. If the payment collection does not occur in time then it would be a big loss for the organization. The five different factors that help in the management of the accounts receivable reconciliation can be enlisted as follows:
* Maintain the Customer Details:
Make sure that your customer is filling up the customers detail information form. It is important to include all information like the physical address, telephone number, fax number etc. You need to include the reference for the credit information and thereby verify the references.
* Explain the Terms & Conditions:
Issue a legal notice to the customers regarding the billing procedure. How they will be getting their bills and when they need to make the payments and also explaining regarding their payment options.
* File the Procedure:
Maintain the logical file for you customer information and billing. Record each of the financial transactions and update periodically to reflect proper financial record.
* Bill on Time:
This is important if you want you’re the customers to pay on time then bill them on time so that they can make the payment. Bills should be sent on time to receive the payment on time.
* Manage Time Efficiently:
Maintain a date schedule for the billing and the reminders. Create a list of tasks so that everything can be accomplished on time. Always be proactive and professional while dealing with financial transactions.
When all these measures are actively implemented for managing the accounts payable and receivable act then managing business becomes simpler and easy. And the fact is 'an easy management leads to better improvement of the organization'.
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Article Source :
http://www.articleseen.com/Article_5 Tips to Guide Entrepreneurs for Managing Accounts Payable & Receivable Act_10960.aspx
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Author Resource :
Author is related with reputed business accounting services providing firm Aditech Accounting Services. Get detailed information about accounts payable reconciliation services and accounts receivable reconciliation services at its official website aditechaccountingservices.com.
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Keywords :
accounts payable, accounts receivable, accounting services,
Category :
Business
:
Management
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