How to Handle Accounts Payable

To handle accounts payable is the one of main function of accounts department. By paying on the time to our suppliers will decrease our liability and second proper control on it through proper accounting record will manage our working capital effective way.


Following are the steps of Handling Account Payable



1. Set Up the Account Payable Payment Process

For handling accounts payable, accountant should make a simple process. There are two sector. One is service and other is production. In both sector, first, we have to receive inventory, then we will record in books. Then, there is the process of refunds and finally, we have to pay our account payable. 

2. Set Up the Alert of Payments

When we pay our account payables, it should be fixed in advance. Delay the payment is not good because it breaks the relation with creditors. So, fix the due date. Same date, your accounting software should send you the alert on your mobile. So, you will get this alert and then you can pay fastly for avoiding any delay. 

3. Set Up the Investigation Staff for All Account Payable Payments

It is very necessary to set up investigation staff. This staff's duty is to check whether there is any false payment is done or not. This staff's duty is also to stop any fraud in payments to account payable. There is big risk of wrong or false payment. So, investigation staff can suggest to reduce it. He can recommends to change the staff on payment duty after every month.


4. Try to Get Discount Earning with Early Payments

Like any other earning, company can also earn discount by paying account payable fastly. So, it will reduce the burden of account payable. Second, we can add more money in our working capital.


Related : How to Process Invoices in Accounts Payable