It’s an average Monday morning; as a small business owner, you head into the office before 8 am with the hope and expectation that it will be a great week and that your sales will meet or even beat your goals. You brew a third cup of coffee, fire up the laptop and prepare to tackle the day. You read a few emails before you come across one that makes your heart sink, and you start to sweat. The email is titled “PAST DUE” and is written in an ominous BOLD RED font. It’s designed to get your attention, so why haven’t you seen this before? Regardless of why you’re only seeing this now, this needs to be addressed immediately. The payment is 120 days past due and threatens the use of a collection agency if payment and proof of payment aren’t made as soon as possible.
The payment amount isn’t necessarily a huge amount, but it does throw the bookkeeping into a bit of disarray. You thought this payment had been made ages ago, but in reality, everything for the past few months is off.
This is the world of Accounts Payable (A/P). So what is A/P, and almost as importantly, what isn’t A/P? Accounts Payable is your company's short-term debt for purchases. These purchases differ from your company’s long-term debts, such as rent, payroll, or subscription services like phone or internet. A/P should appear as a liability account in your bookkeeping for items or services you have received on credit. A/P shouldn’t be considered anything other than simple unpaid bills, and just like at home with the gas & electric, if these bills are not taken care of, things can get a bit messy.
If your A/P is getting behind or you’re finding it harder and harder to keep up with the “PAST DUE” emails, call the experts at ShoreSource Business Solutions. Not only will you never have to read those dreadful emails again.
Tip: By working with a bookkeeper, you will be able to monitor if a vendor or supplier is raising prices and allow you to either negotiate or find a better price.
Our years of experience can untangle the A/P nightmare and make sure you never have to revisit “that” Monday morning again.
Are you interested in learning more about ShoreSource Business Solutions, LLC?
Feel free to reach us at 843.729.2961 or firstname.lastname@example.org.