The task here is to ensure your supplier’s balances are up to date and reconciled to the supplier’s statements.
Supplier’s credit can be interest free if supplier balances are paid on time. Hence they are an invaluable source of cheap finance. Some suppliers offer discounts for payment prior to normal credit terms. But supplier’s balances need to be managed to obtain these benefits. If suppliers are not paid on time, they can restrict your supplies and your business may lose credibility with suppliers.
Managing supplier balances means the following tasks need to be performed on time and accurately. This is time consuming work and you may decide this isn’t what your resources should be concentrated on.
Reconciliation tasks
Agreement of supplier account balances and payment of suppliers
Data entry tasks
Match supplier invoices to goods received notes and purchase orders
Entry of supplier invoices
Re-claiming input VAT
What can we do for you?
We can some or all of these tasks for you. The data entry tasks require less skilled staff time than the reconciliation tasks. We can monitor your supplier’s ledger, to ensure maximum savings. For example, there may be supplier invoices missing that you have paid VAT on. If these are not included in your VAT returns you cannot claim back the VAT on them.
We can also help you in making improvements to your systems.
Improvements
We are always on the look out for practical improvements to your system. We want to help you cut the time down involved in these tasks or to eliminate them if possible by using information technology. We will also suggest ways to maximise supplier credits and discounts.
Accounts Payable
