Understand how to make accounts payable and receivable control more efficient

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Good business management seeks, among other things, to keep the entire financial sector under control, in order to minimize losses and optimize profits.

How is your business management? In this post, we will see how managers can control accounts payable and receivable more efficiently, in a more practical and simple way!

What is accounts payable and receivable control?
First, let's look at what accounts payable and receivable control means. Although the concept is simple, in practice it is not always so easy to maintain this control.

Accounts payable represent the company's liabilities, truemoney database to suppliers, rent for property, equipment, vehicles and any other things, employee salaries , utility bills, taxes, loans taken out from banks and so on.

Accounts receivable are related to the company's assets, the payment that the company will receive from customers, the return on some financial investment, the profits destined for the owner and his partners, and so on.

It is essential that there is a balance between debits and credits when controlling accounts payable and receivable.

Tips for keeping your accounts payable under control
Record everything
You cannot forget to record all your debts, preferably in an automated management system (it can be in the cloud), or else record them in well-organized spreadsheets.

One suggestion is to separate bills with the closest due date and, by category, as fixed expenses (water, electricity, telephone, rent, payroll, suppliers) from variable costs (commissions, taxes levied on the sale of goods , repairs to some machinery, delivery expenses, fuel and other things).

Pay everything on time
Do your best to be punctual with your payments, this will help you gain a good reputation among your suppliers. Avoid leaving any bills late.

Remember that not paying taxes can be considered tax evasion — count on good accounting and tax advice to help you with these issues. Also remember that late payments involve interest and fines, which represent financial losses for your business.

Do not mix household expenses with company expenses
Be careful not to take money out of the cash register to pay debts of yourself, your wife/husband, your children, or the home in general.

To cover these expenses, use only your own salary, that is, the amount you set as compensation for your work (pro-labore). The pro-labore amount must be respected to avoid financial losses.

Cash in hand should be used to keep the company running.

Tips for controlling your accounts receivable
Record everything and make control easier
Just like accounts payable, you should record all accounts receivable. Organize by payment date, customer , amount, and so on.

To facilitate control, you can use technological resources that allow, for example, integration between receipts and payments, the issuance of invoices and cash flow.

Offer payment facilities and advantages
Don't make it difficult for your customers to pay and offer alternative methods such as bank slips, credit cards, PayPal and others. The more ways to pay, the easier it will be to receive payment.