Deal Pack Blog
Tips for tracking payables
As a business owner, you have so many different aspects of the business you have to think about both big and small. Everything from cash flow to employees to office supplies. It can be overwhelming if you are not prepared or if you do not have a good tracking system. One of the most important parts of your business that you must keep a close eye on is your payables. Particularly in the BHPH industry, there are so many different types of vendors involved. You have auctions, service and repair companies, service contract and GAP companies, rent, utilities, maintenance, and the list goes on and on.
So how do you keep your expenses from getting out of hand? There are a couple of things you can do to be sure you are managing your payables effectively. First, you must keep in mind that outsourcing is not always the best option. Finding a software that can track your payables along with handling your day to day operations is ideal. This means you should be able to enter an inventory unit and then cut the check for that unit out of the same place. Having the ability to do this will saves you tons of time as opposed to entering things in twice in two or three different places. This way you can print an accurate report or your paid and unpaid invoices.
Next, it’s extremely important to research your vendors. Don’t get too comfortable with one vendor. Just because you’ve been with them a long time doesn’t mean that it’s in your best interest to stick with them. There are so many different options out there now such as floor planning, which could be beneficial to you. Sometimes, it’s better if you hold on to your cash and pay installments instead of giving it all up upfront. Your cash flow will look a lot better. If your vendors offer terms, then consider taking those terms.
Finally, don’t allow just any employee to handle your payables if you’re not handling them yourself. Make sure that if you do give someone this task, have it be there only task. It’s important to not make any errors when it comes to cutting checks. You don’t ever want to pay too much and lose out on that extra cash, or pay too little and suffer any penalties. Always review you’re a/p documents. If possible, have two people work on your payables. This will prevent any fraud or theft.
Don’t neglect this part of your business. Following the above points could save you time and money in the long run.