Accounts Payable: how to organize and control in your company

.The accounts payable are classified as liabilities that the company has with other organizations to ensure their operation and production.Incredibly, the most frequent problem faced by enterprises in relation to accounts is not the lack of money, but the lack of efficient planning .

In this post, you will understand the importance of adhering to an accounts payable control and learn how to sort your company’s financial obligations.

What does the “accounts payable” financial procedure mean?

Have a routine to keep track of accounts payable.

Account control should be seen as a routine task for the company, as it involves a considerable amount of money and, if it is not efficient, can lead to losses and even problems with justice.

By organizing your company’s debts, you can prioritize the most important payments and even cut expenses that are no longer essential to the functioning of your business.

In addition, you guarantee the payment of all bills on time, avoiding the collection of interest or fines.

Last but not least, you gather essential information to integrate your cash flow and structure your company’s complete financial management .

Whats the matter?

The control accounts payable is essential even in the most basic financial management! But why is it?

Discover 3 benefits that your company gains when joining financial debt organization.

Optimizing your time

If your company’s accounts are always in order and you already know what needs to be paid on each date, you save a considerable amount of time that would be invested in turning over documents.

With the control of the company’s accounts, everything is already sorted by value and date, and most of the payments can be made online! Which means you are unlikely to even waste time going to the bank on a working day.

It is always better to optimize mechanical and repetitive processes to invest time in planning new strategies for the growth of your company.

Greater knowledge about your business

You can only name yourself as the true owner of your business when you understand how it works, and that involves financial management.

Through the organization of accounts payable , you come to understand where your money is going and how important this transaction is for the functioning of your company.

Even if you are not directly involved in the organization and payment processes, it is important to consult this report on a monthly basis to update yourself on the financial situation of your enterprise.

More opportunities to save

In the previous item, you could understand that the control of accounts payable offers the opportunity to better understand the destination of your company’s finances.

Therefore, it is easier to point out the expenses that are no longer needed or that can be reduced in some way.

Every enterprise is in constant transformation, as is the market in which it operates. So it is essential to adapt your investments to keep evolving intelligently.

Integrated management system

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How does “accounts payable” control work?

The control of the company’s financial obligations are, first, organized by the maturity date of each account.

In addition, it is important to measure the relevance of each account to the enterprise. If there is no money to cover all accounts, it is essential to give priority to those that are most important.

It is necessary to commit and update information whenever possible. In addition to maintaining accurate control, it is a great way to gather information for other financial planning reports.


Also read:   Financial control spreadsheet – a useful but limited solution


The task needs to be detailed and account for even the smallest amounts. It is also important to calculate the variables of accounts that do not have fixed prices , in order to predict the value closest to reality and to organize the budget.

Understand the difference between “accounts payable” and “accounts receivable”

It is essential to know how to differentiate between the concept of accounts payable and accounts receivable , which are often confused.

Both are part of the basic structure of a management system or an expense spreadsheet. They aim to calculate and predict what will happen to the company’s money in the next month .

The accounts payable refer to what the company owes to other organizations such as the purchase of goods, taxes , rental fees, water and electricity bills, etc.

On the other hand, accounts receivable relate to the amounts the company will receive from other organizations, such as the result of sales, support from investors, etc.

What does the “accounts payable and receivable assistant” do?

The accounts payable and receivable assistant is responsible for organizing and planning all receipts for incoming and outgoing company resources.

It is a task that requires dedication and organization, since it is essential to classify each account and schedule payments and receipts efficiently.

Therefore, the assistant also makes entries related to the financial transactions of your business.

Generally, the professional who performs this function is specialized in administration or financial management.

The activity is essential for the organization of the company’s resources and strategic planning for future investments.

Step by step: learn how to organize and keep track of accounts payable in your company

Follow the step by step and keep your company organized.

After knowing all the benefits that a good control of accounts payable can offer to your enterprise, the time has come to apply this system in your financial management!

Check below 4 initial steps to start organizing your company’s financial debts!

– List and rate

The first step in starting your accounts payable control is to create a list of all your company’s financial obligations per month.

After gathering all the documents, classify them in groups that present the type of service that that bill charges, for example: raw material, machine maintenance, rent, etc.

After all, it is practically a rule that you do not mix your personal and business finances.

The company’s money must be used for the company’s survival and growth, not for the entrepreneur’s personal life. Regardless of the expense, do not mix both accounts and find another way to organize your personal accounts .

– Scheduling deadlines and expiration dates

It is important to gather accounts that have close due dates and choose to pay them for the periods when money usually enters the company.

Most of the time, companies receive payments on at least two different dates in the month.

Use these days as a parameter to plan the payment of bills , to avoid late payment and also the unpleasant surprise of not having enough money on the due date.

– Advance payments

If it is possible to anticipate the payment of any bill, however small, do not think twice and take the opportunity!

In addition to avoiding charging interest, you may even end up receiving some discounts on account of the advance.

On the other hand, you also benefit from your relationship with suppliers . They realize that you do your job with commitment and organization, which can pave the way for future partnerships and benefits.

– Renegotiation

We cannot exclude the possibility that you are unable to pay an account on time, it happens and there is always a way to resolve it.

If you realize, even before the due date, that you will not be able to comply with the obligation, it is indicated that you already contact the supplier to negotiate the payment on another date .


Also read:   The role of the accounts payable system in financial management


In the business world, it is not appropriate to let the debts roll loose without contacting the other end of the agreement. It is essential to demonstrate your willingness to reorganize your planning and meet the deadlines you are given.

By acting honestly and responsibly, you can even avoid charging abusive interest and fines, which gives the company a chance to reorganize itself.

– Organizing budgets

Before making any purchase, research and make several quotes with the suppliers you find.

In addition to finding better prices, you end up getting to know the market better and the options you can have if you need to change suppliers in the future.

How does “accounts receivable” control work?

Stay on top of the accounts your company has to receive.

In the financial reports, next to the accounts payable , there is information about the accounts receivable . Both depend on each other and form a cycle within their financial management.

Understand how the accounts receivable organization process works and take another step in your company’s financial planning.

– Cash flow planning

From the organization of accounts receivable, it is possible to calculate how much money will enter the company in that month , and thus organize the payments and investments that can be made.

It is at this point that sales that are late or have been negotiated to be paid in the future should also be marked, as well as the interest that will be applied on them or not.

To help control, it is indicated that the payment day is monitored . Analyze the days when each customer usually pays the debts, so it is possible to identify the periods when the cashier will have money to pay the company’s obligations.

– Collection

The most annoying part of organizing accounts receivable is charging those who delayed payment, but it is an essential part of the process and a company right.

Customers do not always make the payment because they cannot, often they forget the due date and a reminder may even be welcome.

Do not delay to charge the customer , as this also ends up delaying further payment.

Create an email specially to send this type of contact and also mark a day of the week or month to collect, it is easier to follow the conversations and organize your spreadsheet.

Start to understand who are the customers who delay most often and start to supervise them more strictly, so that the problem does not become routine and disrupt the company’s financial planning.

– Default

It is important to calculate and monitor the default rate of accounts receivable monthly, to prepare your planning against unforeseen events.

According to data offered by the Central Bank (Bacen), an acceptable default rate is a maximum of 5%.

Just as you can track the history of delinquent customers, it is important to mark who are the good payers and offer benefits in the agreement with you.

Also, don’t forget to apply interest or even fines for recurring or excessive delays that hurt your business. This type of punishment makes the client realize that it is not cheap to delay his payment.

It is a way to make customers realize that it is worth keeping up with your business.

– How to earn upfront payments

To guarantee the transformation of accounts receivable to cash, it is interesting to facilitate the payment in advance or on time to make the idea of ​​not delaying the settlement of debts with your company more attractive and advantageous.

Don’t think of the customer only when he is late. To build a beneficial relationship, how about thanking and congratulating him when he makes the payment on time or in advance? Get closer to the customer and make sure he always prioritizes you.


Also read:   How can your company reduce operating costs?


Example of application of the concept of “accounts receivable”

Theory is essential for teaching the ideas and goals behind a process, but there is nothing better than seeing how it works in practice, isn’t it?


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