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The Power of Accounts Payable System

The ultimate role of account payable system is to take control of the way in which money leaves your business bank account to the payment of the third parties. Account payable system can also be an incredible source of valuable information for the professionals’ procurement in conjunction with essential managing tools. This is an implication that you. There are various uses of Account Payable System. The following are some of the applications for the procurement of accounts payable system.

 

The primary benefit is the control of cash flow. The invoice dates and payment terms and conditions are easily matched for every supply when any supplier credits to your account payables system. This leads to the determination of the time in which money leaves your bank to settle your supplier bills. The longer the term of payment, the longer it takes for your supplier to receive the cash, and hence the longer you preserve ye money in your business. To ensure that you are not paying your suppliers so early, it’s always recommendable for you to keep reviewing payment terms and conditions.

 

It also improves and strengthens the relationship between you and your suppliers. The payments terms and conditions that you get done with are usually the results of incredible negotiations with suppliers who want to be paid ASAP. The most irritating issue towards supplier is to agree with greater payment terms and conditions than they wanted and then have further delayed payments. For good supplier relationships, always ensure that your account payables systems and your staff members pay in good time.

 

Account payables system also help in the prevention of fraud. Fraud occurs when some individuals ads a non-existing supplier to your account payable system records and submits an invoice from that particular fictitious supplier. This leads to a payment regarding that invoice into the bank account of the central character of the fraud. This kind of inconvenience is usually prevented by separation of duties as well as the authorization of adding new suppliers to those that process the invoices.

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