Many of us can relate to how stressful paying bills can be. For small to medium-sized businesses, it’s crucial that they pay on time and have the cash flow to cover their expenses. A recent study reported that 32% of businesses could not pay their vendors, lenders, or employees due to insufficient cash flow. However, it’s not exclusively a cash flow problem. It’s also important to manage vendor accounts and deadlines. Missing a deadline often means late fees which increase the amount that your business will owe.
We have good news. There are ways you can stay on top of your bill pay process. One best practice is to run accounts payable (AP) aging and vendor expense reports on a monthly, quarterly, and annual basis. Bookkeepers who follow best practices for accounts payable ensure all vendors and suppliers are paid on time. Here at Docy we want to simplify this process for you. Below are the top three reasons you should check vendor reports regularly. This will ensure your business runs smoothly and creates trust between you and your vendors.
- Keep track of vendor payments
Regularly running vendor reports including an AP aging summary report and an AP aging detail report help businesses keep track of which vendors they need to pay and when those payments are due. This information helps ensure you don’t miss any payments or incur late fees.
- Spot trends
A vendor expense report can help businesses spot trends in their spending. This information can help you know which expense category spending has increased or decreased over time. These insights can help you negotiate better deals with vendors or make changes to your operations.
- Improve cash flow
AP aging reports can help businesses improve their cash flow by identifying when they are obligated to make payments. Running this report at regular intervals can give you the information needed to create a plan to better manage your cash outflow.
Docyt's Advanced Reports
Docyt builds advanced reports to help you stay on top of your vendor payments. With reports like the AP aging summary, you can monitor all unpaid invoices which are grouped by the number of days they’re overdue. Also, with Docyt’s vendor expense report, you can compare your actual expenses to your budget.
Reduce the stress of paying your vendors by using Docyt accounting automation software. If you’d like to learn more about Docyt, schedule a free consultation today.