The way you manage your accounts payable has a major impact on your business. It’s essential to understand the state of your cash flow.
There are several points to keep in mind in order to stay on top of business accounts payable.
- Create a system. Make sure you have a process for filing and saving all of your invoices. It’s best to keep both printed and digital copies of everything for reference.
- Track expenses weekly. It’s easier to keep track of expenses on a weekly rather than a monthly basis.
- Pay invoices early. When you pay early, you can often get more favorable terms from creditors.
- Seek ways to improve your cash flow. You may be able to cut back on certain expenses or find ways to increase efficiency.
Top Accounting Software Choices
There are many types of software that make it easier to manage your AP. Here are some recommendations.
- Intuit Quickbooks – This is one of the most comprehensive accounting software applications with many functions, such as tracking expenses, billing, managing money and much more.
- Xero – If you want something more streamlined than Quickbooks, Xero is a good alternative. It’s a cloud-based accounting software that you pay for via a monthly subscription.
- Zoho Books – This accounting software is designed especially for small businesses. It’s also efficient for integrating with other software, such as Stripe and many CRM suites.
- FreshBooks – Another efficient cloud-based accounting software that’s made for small business owners who are seeking simple solutions. FreshBooks makes it easy to automate tasks such as managing expenses, sending out invoices and following up with clients.
- Wave Accounting – Wave provides a free suite of accounting and other types of software for small businesses. Free services include receipts, accounting and invoices. You can also upgrade to paid services for accepting credit cards and setting up recurring payments from customers.
How to Choose the Right Accounting Software
There are quite a few choices when it comes to AP tools. The software applications mentioned above are all good, but it’s important to choose one that’s right for your needs. Take the time to research your choices and decide which features are most important to you. Consider these criteria as well:
- Cost – The price is always an important consideration. If you’re on a limited budget you can always start with a free choice such as Wave.
- Ease of Use – This depends on your background and preferences.
- Efficiency – One of the advantages of using software is to save time. Look at the features and determine which is likely to save you the most time.
- Reporting Options – Choose software that has reporting features that you need.
- Mobile Access – It’s convenient to use software that’s mobile-friendly so you and your employees can access it from anywhere.
- Accountant Access – If you work with an accountant, it’s important to use software that he or she can easily access and is comfortable with.
- Integrations – Consider how well the software integrates with other applications you use.
- Limitations – Does the software have any drawbacks or limitations that make it unsuitable for your business?
- Customer Service – Look at the company’s customer service options to make sure you can easily contact them when necessary.
These are some of the main considerations to help you choose the best accounts payable solutions. You may have needs or preferences of your own as well. What’s essential is that you find the best possible system for managing business accounts payable.
And if you’re looking for a way to improve your cash flow, you might consider invoice factoring. Riviera Finance has been helping companies for almost 50 years.