Tips to manage accounts payable (AP) and accounts receivable (AR)

1. Tips to manage accounts payable (AP) and accounts receivable (AR) Review all accounts payable & receivable 1 Making it a habit of reviewing all your accounts payable and receivables can help build a strong foundation for your business. This will also allow you to manage your cash flow efficiently. Knowing whether your payments are coming in on time can put a definitive structure to your accounts. I Beware of fraud 2 It is essential that one should always keep an eye up for fraud, especially when it comes to accounts payable. This is where most embezzlements take place. This is why we always recommend businesses should keep complete track of their AR/AP. Establish credit policies 3 It is always good to offer credit policies to customers & take advantage of credit with your own payables. One of the major challenges that managers face is with the time a transaction takes to close. This is why it is important that the accounts receivable department set strict credit terms. Always be organized 4 When it comes to finance management, it is very important for businesses to stay organized. When you are organised with your finances, you get a chance to stay on top of your receivables to cash flow, getting you to a good place. Make solid payment terms 5 Being aware of the payment terms can help clear any confusion about the amount, hidden fee, etc. This goes for both receivables and payables. www.paci.ai advisory@paci.ai