What is Accounts Payable?
Accounts Payable (AP) refers to the amount owed by a business to its suppliers for the goods and services delivered on credit. Accounting services providers use accounting software to calculate and record total outstanding amount on the businesss' balance sheet. They record fluctuations in accounts payable in its cash flow statement.
Why Hire an Experienced Accounting Service?
The business owners need to keep an eye on their AP expenditure. If they gets out of their hands, it can harm the business' cash and assets. An experienced accounting services provider like GRO IT Solutions, installs reliable internal controls and accounts payable processes to prevent this from happening.
The following is a list of accounts payable expenses:
- Transportation costs
- Charges for logistics
- Cost of raw materials
- Paymens for utilities, power, and fuel
- Charges for phones, & mobiles
- Rental costs
- Licensing fees
- Subcontracting services
How Accountants Process Your Accounts Payable?
Today, many owners prefer bookkeeping and accounting services over in-house accounts payable department. Our accountants intercept accounts payable invoices sent by your supplier for the outstanding payment.
Accurate Payments
They take care of the data entry, approval, payment, and reconciliation of these invoices. They follow the your payment process and take care to pay only legitimate and accurate bills and invoices.
Updated Balance Sheet
They regularly update your balance sheet to reflect the total amount of AP outstanding. It helps you in knowing how much money you owe to your suppliers. It helps you in planning your expenses without crossing the your limit.
Avoid Late Fees
The accountants working for these providers knows the AP process well and know when to proceed with the suppliers' payments. They pay your outstanding invoices well-within the due dates and avoid late fees.
Supplier Relationship
Doing so, they help you avoid unpleasant scenes with your suppliers and any strain in your relationship with them. When your suppliers know that you are always spot-on with your payments, your credit goes up.
Brand Image
Credibility helps. Accounting services providers helps you enhance your brand image. And crediblility may also help you get favourable payment terms, credit lines, and various schemes and disounts offerd by the suppliers to their trusted customers. Your profts and bottom line improves. Most importantly, you get to optimise your cash flow.
Optimised Cash Flow
Our accountants optimise your cash flow by capitalising on the disconts offered by your suppliers for early payments. In addition, they use various payment methods to keep the money in your business as long as possible. Sometimes they do it by paying with paper checks. They also use online payments, credit or debit cards to earn cash-back rebates for you.
Save Money
Accounting services assist you in gaining more control over the cash leaving your business. Their experience and knowledge of the process puts in a masterly position to save every penny for you even when you are paying your suppliers.
Accounts Payable: In a Nutshell
Accounting services take the burden of financial, administrative, and clerical work off your shoulders. They manage the your accounts payable process well and save your valuable time and money. They set you free to focus on the core goals and objectives of your business.
Email us at contact@grogroup.co.in to discuss your needs and know our accounting services prices.