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Managing accounts payable is a critical part of your credit management procedures. Paying your suppliers is important but paying them within their terms is important for your cashflow. It’s also important to make sure that these purchases are authorised and not a scam.

When I say, “within their terms”, I don’t mean pay them quickly, I mean “use the time available to your best advantage“

In smaller businesses this process is easier because there are fewer people involved and the business owner or manager knows what is happening.

When you have a few staff who make purchases but are mostly on the road or at client sites you run into the issue of authorisation and project tracking. That’s when the task of keeping track of your accounts payable has to go through more strict procedures and processes.

Having credit cards for each of the authorised purchases makes it a little easier and that is where companies like Melio come into the picture. Melio was bought by Xero and some people say it has contributed to the share price being smashed by investors.

Xero has been trying very hard to break into the Small Business market in the United States and this is one of their recent strategies to have more success.

Typical businesses that have credit cards for each employee are trades and building companies as well as any business that provides a solution that involves providing products AND services.

Our Accounts Payable Courses include Accounts Receivable training too and we have case studies for both a business telephone installer (CloudPBX) and a handy man who has to manage a project that involves 3 staff and a company truck – and that’s to install a garage shed.

Accounts Payable and Accounts Receivable are all part of Credit Management and these skills are included in the Daily Transactions and Data Entry courses for MYOB, Xero and QuickBooks Online.

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