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Is Managing Your Accounts Receivable and Accounts Payable Always a Hasty Job?

By Analytix Editorial Team

August 6, 2008 8 Comments
Is Managing Your Accounts Receivable and Accounts Payable Always a Hasty Job

Accounts receivable and accounts payable (AP/AR) is about business credit. Credit makes the business world go ‘round. The vast majority of businesses cannot get by as all-cash operation. If you give credit to your customers, you have to track your accounts receivable, managing and collecting the money owed to your business by your customers. Having accounts receivable means you need to track invoices and credit notes issued to your customers and deduct payments they make. You also need to make miscellaneous adjustments, such as interest charges on overdue accounts, charge back for not sufficient funds checks, and so forth.

Accounts payable, on the other hand, involves managing what your business owes to others. AP can mean all your short-term payment liabilities, including payroll and taxes, trade payables, normal business expenses such as raw materials, products for resale, and services.Bookkeeping Services

Managing accounts involves a comprehensive spectrum of transaction processing and administration handling along with keeping tabs on too many papers like invoices, bills, documents etc. However change is possible with more and more control and coordination leading to a shift in resources responsibilities from mere clerical to more analytical level. Generally it’s a month end panic or tax season panic when small business owners suddenly go on spring cleaning session to tackle all the bills, invoices and miscellaneous business documents to make sense out of them. This will lead to chaos, increased risks and missed opportunities.

As a small business owner you are more focused on strategies to grow your business rather than spend time doing routine things like managing your accounts receivables and paybles. But is a very important part of your business. You do need to pay your bills on time if you want to have good relationship with vendors and you do need to keep track of who all owe you money. What if you want to do all this without hiring bookkeeper or an accountant?

Outsourcing Accounting and outsourcing bookkeeping is a cost-effective option for small to mid-sized business owners.

Major benefits from outsourcing back office bookkeeping and accounting tasks:

  1. Save enormous amount of time and costs
  2. Analysis of reports generated by outsourcing partner of historical patterns of spending and receivables shows the trouble spots to avoid in future
  3. Benefit from the significant increase in process efficiency, profitability and financial control

Hiring the right Finance Accounting Outsourcing partner will ensure that your accounting systems and processes are smoothly managed to increase profitability. Timely reports will ensure well informed decisions are made to increase ROI. Outsourcing provides an opportunity towards successful conversion of transaction management, documents management, eliminating duplication leading to increased efficiency and productivity gaining an edge over competitors.

At Analytix, we help small to mid-size businesses ascend the growth curve by offering more streamlined operations. For more information on how we can help your business gear up for a more successful, please contact us at [email protected] or 781-503-9004.

Comment

    Nice blog dear i have really learn a lot from this blog thanks. This blog is very informative for me. I became very pleasre to read it.

    Great tips and very helpful….

    Yes, I totally agree with what you said. I think that paying bills too on time will create a good connection between you and the vendors. This create a good impact to the business. Thanks for sharing this article.

    I believe that tracking down invoices is very challenging yet I believe that if properly done it will give a lot of advantage to the business owner and the business itself. Thanks for sharing this article.

    I totally agree with what you said. I think that it is definitely important to choose the right accounting partner for your business so that you will not going to have a problem in your business accounting.

    Yes, I totally agree with what you said. I think that it is very important that we choose the right accounting partner for our business to avoid future problem in our business accounting and finances. This article is very informative.

    I agree! I think that when we hire an accounting partner, we’ll definitely achieve a better business operations. Thanks for sharing this article. This is very helpful.

    I totally agree with what you said. Hiring the right Finance Accounting Outsourcing partner will ensure that your accounting systems and processes are smoothly managed to increase profitability. I believe that with their help we can do the accounting properly.

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