4 Important Steps to Manage Payable and Receivable Accounts

Making efficient financial management of a business is a task that requires some care, especially in the control of payable and receivable accounts. To note, it is necessary to schedule so that there is no shortage of money. It turns out that this is not always an easy task so in this post, we’ll show you how to do this control.

Let’s explain in detail what this account control is, how important it is and how to apply it in your company. Keep up with us until the end of the text!

What is the control of payable and receivable accounts?

Control is a business management tool that helps a lot in the day to day for the entrepreneur to follow the inflows and outflows of money in their cash flow. It is important to understand that account control is different from financial planning, which sets goals and objectives for a longer period of time in the long run.

Therefore, the company’s cash flow movements, such as revenues, expenses, payable and receivable accounts, loans, income, and others, must be included in its control.

Receivable accounts are invoices that your company has the right to collect, whether from customers, suppliers, or installment sales since the bills to pay are what you have to shell out, such as light, water and salary payments.

The control in question, therefore, is nothing more than being aware and organizing all kinds of accounts of your business. This way, you can keep the incoming payments and those that need to be paid in a timely manner, so that your cash does not get depleted for a day or more.

How do I apply to my business?

Nowadays, with so much technology and applications available, you can no longer control the accounts in a notebook. With this in mind, control of your accounts can be done both in Excel spreadsheets and in your online management software.

Remember that this second option is much safer to save your data, in addition to being more practical, as the software sends notices at the expiration of your invoices to pay.

Keeping track of payable and receivable accounts is extremely important in maintaining the financial health of your business. So, avoid any kind of problem in your box and have the benefits always up to date.

Starting with the payable accounts, you need to have an accurate record of all of them, keeping them up to date, and of course, knowing how to separate personal and company finances.

1. Record everything and make frequent checks

   It is important that you record all your payable accounts, either in a simple spreadsheet or in your online management system. Regardless of the choice, enter all maturities correctly, so be always aware about them. Above all, do this frequently. It is no use to control only the first month, for example, and leave the rest of the blank.

2. Pay bills on time

   You have to be aware of the maturities so that the bills will not be delayed and interest will not be charged. In this way, the control of your accounts payable must be strict so that no invoice is left out. If possible, anticipate payments so that this does not happen. It is worth noting that, however small the interest rates are, little by little, the numbers increase, which may bring greater losses at the end of the month. In this context, you should use the best invoice app.

3. Learn to collect debtors

It is not common to see sectors of collection in small businesses. One solution in this sense is to designate an employee and empower him or contract outsourced services.

4. Make long-term financial planning

   The market is volatile, especially for companies that are in seasonal business. Therefore, in addition to the control of payable and receivable accounts, it is important to have a financial planning that covers at least one year.