5 mistakes to avoid when paying suppliers
In a way, suppliers are part of your team and are an important factor in the success of your company. Therefore, your relationship with them must be healthy and meet certain criteria for the welfare of their work commitment.
The control of the payment of invoices to suppliers is a key point for the administration of a company. This helps you save time and money, as well as avoid mistakes and complications. As a financial director, you must manage accounts payable without unexpected movements; keeping good control of invoices will support your company’s accounting.
To obtain optimal results with your supplier invoice management, there are 5 points you should always keep in mind:
Madaí García · Oct 14, 2022 · 5 min de lectura
Madaí García
Oct 14, 2022 · 5 min de lectura
Establishing a control process for invoicing your suppliers will help you better manage your business. Save time and money with these tips.
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In a way, suppliers are part of your team and are an important factor in the success of your company. Therefore, your relationship with them must be healthy and meet certain criteria for the welfare of their work commitment.
The control of the payment of invoices to suppliers is a key point for the administration of a company. This helps you save time and money, as well as avoid mistakes and complications. As a financial director, you must manage accounts payable without unexpected movements; keeping good control of invoices will support your company’s accounting.
To obtain optimal results with your supplier invoice management, there are 5 points you should always keep in mind:
Madaí García · Ene 17, 2022 · 5 min de lectura
Madaí García · Ene 17, 2022 · 5 min de lectura
Ene 17, 2022 · 5 min de lectura
1.- Do not neglect communication
When talking about money matters, it is essential to try to create solid and clear relationships, so you should always be honest with the situation that arises.
If for any reason you cannot meet your obligation on the agreed payment date, contact your supplier and inform him of the problem, maintaining a cordial and respectful treatment, so that you can negotiate a restructuring of the debt or a possible postponement of payment.
You must avoid falling into acts that fracture the relationship and take into account the same procedures that you perform with your customers as effective collection actions to apply them with your suppliers. Do not forget that in this case, you are the customer.
2.- Validate the invoices before issuing them
When talking about money matters, it is essential to try to create solid a
The invoices you send to your suppliers must have everything in order. Before issuing an invoice, you should check for possible errors, without waiting for the customer to check this point.
An unchecked invoice may be paid later than it should be, not to mention that it will cost more work to rectify it later, increasing the administrative work.
3.- Control the invoices pending payment
For both you and your suppliers, invoice payment control is one of the most important tasks in invoice management. Poor invoice control can lead to cash flow problems.
Therefore, you should keep a record of all invoices and indicate the payment deadline your company is obliged to meet. Failure to do so can hinder payment processes and generate high interest on late payment for not paying within the stipulated time.
4.-Do not manage your accounts manually.
Performing tasks manually makes the processes subject to many more errors, which causes the need to reprocess the information and, as a consequence, the data is less reliable.
To avoid these setbacks, investing in automatic collection software is essential. With it, you can automate the activities of your team and achieve greater security, productivity, and agility in each of the processes.
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5.- Use invoice management software
An effective method for controlling supplier invoices is, without a doubt, an invoice management platform.
If you have an automated software adapted to your company, you reduce the effort of supplier invoice management and operating costs, speeding up the financial closing and auditing processes. In addition, an invoice management platform facilitates invoice analysis and performance monitoring, thus ensuring that payments are issued on time, without delay.
Accelerate your business processes with Vendorplace
The goal of any finance department is to shorten the lead time for payment fulfillment in the accounts payable process. That’s why digital vendor payment tools can help you in a variety of ways by applying them in the right way to your business financial management model.
Digitize and streamline payments to your suppliers. Get to know the new way to pay your suppliers in seconds with Vendorplace, synchronizing your invoices, approving and paying each one of them. Avoid delays and pay your suppliers quickly by any means, without the need to make bank transactions; or upload your receipts to the platform.
Payments are always on time and under control!
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