Payables Accounting at Meru Accounting
Meru Accounting is India’s leading bookkeeping firm that has a global presence and also provides its services on Payables account management. We track your accounts on a very regular note and helps your business run smoother.
Meru Accounting’s accounts payable processing solutions which are innovative and flexible provides clients with the capacity of converting their procedures for accounts payable into the system. The accounts payable accounting solutions of ours are flexible, cost-effective and quick in implementing. Our accounts payable processing has been created by integrating several technologies. Further, the accounts payable help provided by us are of a superior quality which could be matched by very less companies and our services are innovative and comprehensive.
Meru Accounting provides the following solutions: The updates of the system via: Assessment of the trends relating to the history of purchase and price of supplier; Providing summaries (by means of segment, age, and so on) of money one owes the vendors; Assessing supplies which are not billed, opening of PO commitments, and so on; Reconciling accounting statements of vendors with your books; Preparing account statements of vendors; Maintaining accounts payable records; Preparing debit or credit notes wherever needed; Preparing instructions for supplier payment disbursements which are due by means of direct transfer or checks; Using ‘account direct’ payments via documentary credits based on the bank’s suggestions; Recommending early pay of the invoices of supplier wherein cash discounts which are attractive are made accessible; Updation of the accounts payable system through supplier bills processing; Resolving open issues via follow-up of alerts or escalations; Approving and verifying bills from the suppliers, after making a match with the purchase orders and receipts of goods/services; Processing services for invoice; Supplier invoices; Buy orders; Evidence pertaining to the receipts for goods and services.
When a company places an order and receives goods or services in advance for paying for them, it is termed as the company is purchasing the good on accounts or on credit. The vendor or supplier of the goods on credit is also considered as a creditor. In case the company receiving the goods does not sign a promissory note, then the vendor’s invoice (bill) will be recorded by the company in its liability account as Accounts Payable.
The process of payables involves getting into a colossal amount of detail to ensure that only accurate and legitimate amounts are entered in the accounting system.
Major of the details that need to be reviewed will be found in the below documents
Purchase order issued by the company
Receiving reports issued by the company
Invoices (bills) from the company’s vendors
Contracts and other agreements
There is always a way to make the payables processing efficient and effective. Below are some tips
- Process the vendor invoices accurate and in a well-timed manner
- Keep accurate records of the general ledger accounts
- The accrual of obligations and expenses that have not been processed
And if the above-mentioned points are appropriately and successfully taken care of then the accounts payable process will also benefit and positively affect the company’s cash position, credit rating and relationship with its suppliers.
So it’s critically important to have everything organized and in a proper systematic way. This will in turn help and play a significant role to keep your vendors happy. Paying your suppliers on a regular basis has a positive effect on your business and that’s what keeps the client happy and satisfied.
Bargain terms on a better price but never on the premise of compromise. The bargain should be such where no one is on the losing end and yet both achieve what they need by giving the other what they want. And below are some terms that can be taken into consideration to make the whole process workable:
- Always know the actual/true cost – having a proper pricing structure and history of the vendor is crucial, because it will help you identify the trends.
- Put forward realistic expectation – with proper know-how of the vendor’s history, will help to be step-ahead of the situation.
- Understanding the vendor’s language – a lot of vendor’s spell their constraints in their invoices.
- Open ended-discussion with the vendor – even after all the internal work, always remember to listen before you act.