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Poor Cashflow Culprits - Your Accounts Payable Process

Poor Cashflow Culprits - Your Accounts Payable Process

One cause of poor cashflow relates to when and how money is spent in your business, including your Terms of Trade with suppliers.

Do you have spending budgets in place? 

It’s best practice to prepare an overall business budget every year, usually before the beginning of your new financial year. It’s also best practice to make sure that team members who have authority to order products and services are doing so within the parameters of an agreed budget, and that controls are in place to ensure that department spending budgets are not exceeded.

Now is a good time to review (and document) your accounts payable process, from ordering right through to making payment.

When was the last time you reviewed your suppliers’ Terms of Trade and prices? 

Terms such as payment expectations, discounts for early payment, late payment implications, insurance, and warranties are all worthy of a closer look. What controls are in place to ensure supplier payments are made on time and discounts for prompt payment are maximised? 

Have you recently evaluated the pricing of your current suppliers and compared this with competitors’ prices? Your evaluation should include delivery charges, payment terms, and discounts.

There are many more strategies you can employ to minimise the risk of fraud and human error.

Talk to us about your plans to maximise cashflow. We can help you distil your goals and ideas into a concise, simple Cashflow Management Plan that will keep you focused on what’s important.

Moving to Panthera is easy

It’s a big decision to move accountants. We get it. That’s why we have a clearly defined process in place to make it as straightforward as possible.

Step 1: We have a short initial discovery meeting to understand your needs so we can create the perfect service package for your business

Step 2: You receive your tailored proposal with one simple monthly fee and you e-sign the letter of engagement

Step 3: You provide your current accountant with notice – and you leave the rest to us!

We liaise directly with your previous accountant regarding the transfer of information. We request authority from HMRC to act on your behalf. We handle as much of the admin as possible, so you can get on with running your business – safe in the knowledge that everything is going on in the background. And if there’s any action for you, we let you know.

Contact us to find out how we can help you

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