3 ways how SMEs should manage accounts payable

No matter the size, every business needs to pay bills. As a small business owner, you may have some ongoing financial liabilities, including loan repayment, monthly utility bills, monthly rents, and many more. At the same time, you may need to make some occasional payments. For instance, you may need to buy new equipment or hire experts on an as-needed basis. As your business grows, managing your accounts payables could be a daunting task. Even if you hire an accountant, manual errors can still occur. Moreover, managing accounts payables manually is a time consuming process. Alternatively, you can use cloud accounting services and tools like the Xero accounting software Singapore to stay on top of your accounts payables. Here are some useful tips:

Use new technology

You should utilize the power of the latest technology and tools to streamline your accounts payable. One good idea would be to use the cloud-based Xero accounting software. Once you upgrade to a cloud-based system, it would be easier for you and your team members to access accounting data. All users will be able to not only access but also update accounting data anytime and from anywhere, as long as they are connected to the internet. Your company’s accounting data will remain secure in a single, centralized server, making it easier and time saving to update your accounting data, whenever required. If some of your employees need to make purchases from a remote location, they can use a digital purchase order to update accounting information instantly. Most digital purchase orders come with preset fields and require the user to fill out all-important details while making a purchase. This means you get access to complete information about any purchase made from a remote location. This helps reduce bookkeeping errors and any issues that might arise due to incomplete information.

Use an integrated system

Another benefit of using cloud accounting services in Singapore for managing accounts payable is that it helps integrate different accounting programs, thereby helping you collate accounting data quickly and conveniently. This also helps reduce the possibility of duplicating data. An integrated system helps foster collaboration among employees. For instance, once your sales staff fills out digital purchase orders, your accounting staff can access the information instantly. With access to latest accounting data, your accounts payable system displays the latest data, which helps reduce accounting errors.

Approve payables faster

When you use cloud accounting services or tools like Xero accounting software for managing accounts payable, it also helps to give approval to your payables quicker. In conventional system, you need to send hard copies for approval. In comparison, online accounting system allows you to send a payment approval request with some simple mouse clicks or finger-taps. The authorized staff can quickly review and give approval to your request. The staff member can even use a digital signature in the approval letter. He or she can also ask for more information from you, if required. You can follow up or send any additional information required in no time. This helps to save a lot of time and efforts in getting an approval.