Payable Management – Get the Latest Update On Best Practices In Managing Account - Plymouth Meeting, PA

Friday, 7 December 2012
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City: Plymouth Meeting, Pennsylvania
Offer type: Offer

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Contact name expensewatch

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Managing proper time of payment according to cash flow of the company is the best practice for payable management. This practice not only improves the profitability of the company but also improves cash flow. Some companies workout the date of payment of invoices after a particular period and this period is calculated as per company's sale and total payouts made in one financial year. Obtaining discounts on payments made before or on due date, segmenting the suppliers according to the goods they supply helps in working out suitable terms of payment for better payable management.

Payable Management - Repetitive tasks not only consume valuable time but also chances of errors in those works are high. Automating repetitive tasks like invoice feeding, matching the invoice with receipt of payment, real time access to pending invoices for payments and prior information about the near due date invoices can be automated by the use of technology.

Payable management is a tough process to handle because it involves many activities which consume time and manpower and without following best practices chances of mistakes is always high which can be costly for the company. Large part of time is wasted in covering up for the errors or confusions created by the suppliers which make payable management even more tedious to handle.

With the use of technology in payable management training and making employees aware about payment ethics of the company, maintaining proper security measures in the software and identification of the person before allowing access to the data and disallowing authority of one person to make the payments are few best practices to avoid fraud payments and transactions. Maintaining two way communication with the vendors, maintenance of vendor master file with all the details to access them, conducting random checkups about vendor status and keeping the number of active vendors to minimum are also best practices in payable management.

ERP software is adopted by many large organizations for automating such processes. Making regular or recurring purchases with cards and making payments with electronic fund transfer also helps in reducing work load which eventually reduces the chances of mistakes in payments and wrong entries. Other practice adopted with use of technology for payable management is use of web based catalogs which is a very simple way of keeping track of all the purchases made by the employees and payment is made for bulk purchases made in a period as mutually decided between buying company and supplier.

About the Author:

Purchase Order Process - ExpenseWatch.com delivers spend management products & services for businesses that automate manual, time consuming paper-based processes for company purchases, payable invoices and expense reports, while enabling visibility and control of all company spending.ExpenseWatch.com delivers expense control products & services for businesses that automate manual, time consuming paper-based processes while enabling visibility and control of all company spending.