We all are aware that making profit is nice, however, we must also recognize that cash flow is necessary. One of our objective is to convert A/R to "Cash" ASAP! How quickly are your credit customers paying for your services/and or products? Taking appropriate action to have more cash coming into your firm is a top priority.
Running an AP trial balance at the end of every month can help catch mathematical or vendor payment errors. Accurate AP records and an efficient process for producing and reviewing them create a base for timely, correct reports that ensure suppliers are paid on time and the business's credit rating doesn't slip. Stretch out the use of your funds, no need to pay your suppliers early