- Advertising (10)
- Arts and Entertainment (6)
- Article and Content Writing (12)
- Aviation and Aerospace (0)
- Automotive (44)
- Architecture (3)
- Astrology and Physics (0)
- Beverages (2)
- Beauty and Cosmetics (4)
- Book Reviews (4)
- Brain Disorders (2)
- Business (60)
- Career Planing (7)
- Computers and Technology (35)
- Finance (23)
- Food and Drink (5)
- Gaming (5)
- Health and Fitness (96)
- History (6)
- Home Based Business (3)
- Sports (3)
- Literature (0)
- Insurance (3)
- Internet Business Online (6)
- Investing (1)
- Kids and Teens (2)
- Mobile Phones (0)
- Mobile Computing (0)
- News and Society (5)
- Packers and Movers (0)
- Pets (2)
- Physical Therapy (2)
- Programing (0)
- Poetry and Jokes (0)
- Politics (1)
- Real estate (22)
- Recreation and Sports (1)
- Reference and Education (6)
- Relationship (5)
- Religion (1)
- Research (1)
- Restaurants (1)
- SEO (2)
- Shopping and Products reviews (8)
- Software (20)
- Travel and Leisure (11)
- Taxation (1)
- Video Games (3)
- Virtual Reality (0)
- Internet (0)
- Weddings (2)
- Women`s Issues (2)
- Writing and Speaking (4)
- Yoga (0)
- Other (28)
WHAT ARE ACCOUNTS PAYABLE INVOICE PROCESSING
Invoice processing is the process
of assigning an invoice to a specific supplier/vendor and issuing an invoice
accordingly. It is a key feature of any company’s bill payment system because
it prevents double-spending on invoices. This article explains everything you
need to know about accounts payable invoice processing. Keep reading to
discover how it can help your business grow, expand and succeed.
What Is Accounts Payable
Invoice Processing?
Accounts payable invoice
processing is collecting the money owed on an invoiced item as soon as possible
after it is due. This can be a monthly invoice or an annual one. When you
process payments annually, it’s common to have many separate invoices from
multiple suppliers. Once you add up all the separate invoices and their
associated refunds, you’ll quickly discover insufficient money in the company
bank account to cover them all. However, the leftovers need to be paid
immediately so your business can start investing in things like expansion and
equipment purchases sooner rather than later. It might seem like a small thing
to pay invoices immediately, but if you look at it from another angle, it can
be quite liberating because it relieves pressure and makes payments more fun!
What are the benefits of
accounting for payments on an invoice?
Account Payable Invoices can help
you collect payments faster as they require less paperwork and are recorded
electronically. This alone can have a significant impact on your cash flow.
However, additional benefits come from recording payments on an invoice. These
include the following:
Forecast cash flows
Knowing at what stage in your
business your cash is, helps forecast your cash flow. You can then take steps
to mitigate risks and improve your financial health.
Accessible payments
It is much easier to track
payments on an invoice when your company has a system that automatically
assigns them a due date. This way, if you fall behind on your obligations, you
can easily chase down the responsible parties and make sure they pay their due.
Improve control of payments
Having a process that
automatically prepares and records payments on your invoices can help you
improve your control of payments.
When to process payments on an
invoiced item
When you have an invoiced item
you need to pay, the method depends on your circumstances. When you receive a
bill, you can pay it or negotiate a lower amount. If you pay the bill, there’s
no other process necessary. But if you want to negotiate a lower amount, you
need to write the vendor a letter and include a description of the item, the
value, and the date you bought it. This is known as a bill of exchange and is a
formal method of exchanging cash for goods. If the matter still isn’t solved to
your satisfaction, you can bring it to a neutral party’s attention. This
dispute can be resolved amicably, or you can bring it to a billing dispute or
collection hearing.
Wrapping up - Should you
process your invoices?
Accounts payable is a process a
business must manage, whether in-house or with the help of outsourced
accounting services for small business. The key here is to be as clear and
specific as possible with your accounting process. Be aware of the costs and
consequences of not following it. Paying bills is a necessary evil in business
- but when done correctly, it can be one of the most enjoyable aspects of your
job. If you’re not willing to put in the effort to be accurate, then you might
as well forget about it. But if you’re willing to take the time to follow all
the processes laid out for you, then you’ll be surprised by how much more
effective your invoices will be.