Why You Need an Accounts Payable Manager
As a small business owner or leader, you may believe that accounts payable (AP) managers are only necessary for large corporations with vast numbers of staff, vendors, and suppliers. After all, processing company payments is a piece of cake, right? Well, not quite.
Bookkeeping is more complex than many of us realize, requiring excellent organizational and communication skills. Accounts payables represent a significant portion of the transactions that regularly take place within small businesses, so it’s worth investing in a dedicated AP manager to handle these payments – even on a part-time basis. If you’re still a little unsure about why your business needs an AP manager, we’ve put together a handy list of benefits below.
1. You’ll avoid mistakes
An AP manager will help you avoid mistakes by keeping close track of invoices and payments and taking extra care to ensure all details are accurately typed. They’ll also have time to double-check every entry in your accounting system and make necessary corrections, reducing the need to trigger time-consuming error resolution processes.
2. You’ll keep vendors on your good side
An AP manager will ensure your vendors receive accurate payments in a timely fashion – a crucial skill if your business works with a large pool of third parties. Your AP manager will also have plenty of experience interacting with suppliers and other third parties, ensuring your business communications are always as polite and professional as possible.
3. You’ll save money
That’s right – the AP manager who organizes your expenditure can also save your business money. Over time, they’ll gain valuable insights into your spending patterns and develop strong working relationships with vendors. As well as identifying potential cost-cutting strategies, your AP manager may develop the leverage to start negotiating deals, including discounts and beneficial payment terms. For example, they may be able to strike discounts for early invoice payments. If you’re struggling to manage your small business budget, an AP manager could provide the support you need.
4. You’ll improve workflows across the business
Have you ever encountered workflow bottlenecks while waiting for colleagues to process payments? We’ve all been there. Sometimes, you need payments to clear before you can start using a third-party service or managing a strategic budget. With an AP manager, you can significantly reduce such bottlenecks, ensuring productivity and growth remain as high as possible.
5. You’ll avoid late fees and prevent fraud
Late invoice payments can incur hefty fees that will impact your bottom line and potentially affect your company’s reputation. Similarly, failure to pay close attention to vendors’ invoices could lead to mistakes such as overpayment, underpayment, and payment of fraudulent invoices. All these problems could lead to major administrative headaches that ultimately cost your business time and money. With an AP administrator, you can easily avoid these mistakes!
Trust Black Forest Virtual to handle your accounts payables
On the lookout for a friendly, professional bookkeeper with decades of administrative experience? I’m ready and waiting to help! Contact me if you want to chat about AP for your business by emailing christine@blackforestvirtual.ca.