15 Tips for Managing Supplier Payments Like a Pro

Dealing with accounts payable ain’t no joke. If you don’t stay on top of all those supplier payments, it can wreak havoc on your cash flow. Miss a payment or two, and suddenly your relationships with key partners go sour. Before you know it, your business is in serious financial trouble.

Don’t let accounts payable get out of control on your watch. Use these 15 tips to manage supplier payments like a boss:

  1. Hammer out clear payment terms upfront. Negotiate for more time to pay if you can. Get those early payment discounts!
  2. Stay organized with accurate records of all invoices and due dates. Accounting software can help streamline here.
  3. Prioritize payments to keep critical suppliers happy. Don’t let key relationships go south due to late payments.
  4. Forecast cash flow regularly to ensure sufficient funds to cover upcoming supplier payments. No surprises!
  5. Implement an approval process for purchases and payments so expenses stay legit. No unauthorized spending!
  6. Create a budget that accounts for projected accounts payable expenses. Plan ahead!
  7. Ask for extended terms from suppliers if cash flow gets tight. Don’t be shy – just ask!
  8. Automate with fless spend managment tools to track invoices and simplify payments. Save time and reduce errors!
  9. Snag early payment discounts from suppliers when offered to reduce costs. Worth it? Crunch the numbers!
  10. Verify invoice accuracy carefully before paying. Confirm goods and services received match.
  11. Stay on top of aging reports to catch late payments quickly. Don’t let invoices languish!
  12. Build strong supplier relationships through open communication. They’ll be more flexible when needed.
  13. Explore financing options like loans or invoice factoring if cash flow is perpetually tight.
  14. Maintain a cash reserve to cover unexpected expenses and cash crunches. Be prepared!
  15. Reevaluate suppliers regularly to find opportunities to optimize and reduce costs.

Managing supplier payments smoothly takes discipline and vigilance. But stay on top of these tips, and you’ll keep accounts payable firmly under control. Then you can get back to doing what you do best – growing an awesome business!

About Fless

Fless is the unified spend management platform for SMEs in Africa. It allows businesses to manage their finances with ease and efficiency.

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2 Comments

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