What are your current accounting processes like? Do you have a set schedule of when invoices should be paid? Do you have control of which bills are paid, and when? Does your bookkeeping staff sometimes miss payments or make late payments because your accounting processes don’t help keep accounts payable procedures running smoothly?
Missing payments can be a costly error when you’re running a business. In addition to late charges, let’s consider some of the hidden costs of missed payments to vendors, independent contractors, and anyone else you do business with.
- You may lose desirable terms like Net-30 or Net-60 for payments. This can stifle business growth, because you won’t have the funds to invest in new equipment, inventory or supplies you need to run your business.
- Top vendors may refuse to work with you if you consistently fail to pay bills on time.
- Creditors may increase your finance charges on existing credit lines.
- It can be difficult, if not impossible, to obtain new credit, loans, or funds from investors.
- If you use a company charge card, your credit may be cut off or your credit line reduced substantially.
- Employees who have their corporate charge cards declined may face embarrassment, resulting in a loss of morale and concern about the financial future of the company. If it happens frequently, you may lose top talent.
- The best independent contractors may not want to work with you if you consistently pay late. If they do continue to work with you, they will no longer put you on the top of their priority list.
- Your utilities may be shut off, resulting in a lack of productivity, loss of company morale, and embarrassment, not to mention re-connection charges.
In addition to the financial costs of poor accounting processes, without the proper accounts payable procedures your company’s reputation may be at stake. Isn’t it time to establish the right accounting processes with an outsourced bookkeeping service you can trust?
Let AccountingDepartment.com handle your bookkeeping and we guarantee that, as long as you have the money in your account and authorize a payment, we will never miss a payment for you.
