If you’ve ever felt overwhelmed by bills piling up or found yourself scrambling to cover a late payment, you’re not alone. Poor accounts payable management can drain your cash flow, rack up late fees, and strain relationships with suppliers—ultimately threatening your business’s stability. The good news? With the right strategies, you can take control of your payables and keep your business running smoothly.
How to Automate and Streamline Bill Payments
Manually tracking and paying bills is inefficient and prone to mistakes. Hiring a skilled bookkeeper will free up your time to focus on business growth and profitability.
Here’s how:
- Bill Tracking – Expert bookkeepers can track bills and ensure payments are on time by using use programs such as Xero.
- Set Up Automatic Payments – Your bookkeeper can set up and monitor automatic payments where possible to avoid missed payments on recurring bills.
- Schedule Payment Runs – For better efficiency and cash flow, your bookkeeper should process bills in batches—weekly or bi-weekly—rather than one at a time.
Setting Up a System to Track and Prioritize Due Dates
Don’t miss payments; it will damage your business credibility and incur substantial penalties. A well-organised system helps you meet deadlines and save money.
A good bookkeeper will:
- Create a Payables Calendar – Use a digital calendar or accounting software to track all upcoming bills and payment deadlines.
- Categorise and Prioritise – Prioritise your bills by due date and importance, labelling them as urgent, high priority, or standard.
- Review Weekly – Dedicate time every week to check outstanding invoices to avoid overlooking any.
Negotiating Better Payment Terms with Suppliers
Many businesses assume payment terms are fixed, but they’re often negotiable. Adjusting your terms can improve cash flow and reduce financial strain.
- Request Extended Payment Terms – Many suppliers are open to Net 45 or Net 60 terms if you have a solid payment history.
- Ask for Early Payment Discounts – If cash flow allows, some vendors offer discounts for early payments, helping you save money.
- Build Strong Relationships – Good communication and a reliable track record can lead to more flexible arrangements during tough times.
Accounts Payable Nightmares Conclusion
Neglecting your accounts payable can cause serious financial headaches, but with the right bookkeeper, using the right software and strategies, you can keep your bills under control. By automating payments, staying on top of due dates, and negotiating better terms, you’ll avoid cash flow crises and keep your supplier relationships strong. If you need expert guidance in managing your accounts payable, consider working with a professional bookkeeper to ensure smooth operations and financial stability.
If you have questions, you may find answers here: FAQ