Tips to prepare your account payable
Yes. It’s the end of the year; and with all the holiday festivities going on, businesses around the world have effectively come to a short break (either officially or mentally.) But right now is actually a fantastic time for you to look into ways of improving your business – and in this specific case – your expense and accounts payable operations for the new year around the corner. And since we are doing this for all of our clients (and all of their accounting processes,) we figured that we’ll share some accounts payable tips with all of our fans out there.
W9 & 1099s
Do you hire contractors and/or other 1099 vendors to do work for your business? If so, you’ve got to obtain a W9 form from each of them and keep it on file as part of your vendor records. If you don’t know for sure, it is probably a good idea to have someone go through your contractors/vendors list and make sure that you have them. Remember, you’ll also have to issue 1099s (forms can be ordered from the IRS for free) if you have paid them more than $600 in 2010. The 1099s are due January 31, 2011.
Take Your Accounts Payable Process Paperless
The bill pay process is by far one of the accounting process that requires having the most papers passed around in the company. Having papers passed around means the process not only wastes resources, it also takes up physical space and kills valuable time. Look into taking this process virtual (better yet, into the “cloud”) and you’ll find that it is not only easier to find what you are looking for, but your entire processes will be less cluttered and more efficient. Saving time, frustration and of course, money.
Pay Your Vendors Electronically
In case you haven’t heard – paper checks are dead. Bill paying technology has improved ten folds since our accounting teacher taught us our first check fraud in college. Today, the options to pay our vendors electronically are abundant and secure: ranging from ACH clearing to eChecks to credit cards. Talk to your banks to see what they have to offer. Talk to us. Tell your vendors that you are going to start paying them electronically – they’ll love it because they’ll get paid faster. You, on the other hand, will save on time and money and your (or your assistant’s) finger from paper cuts and mouth from the nasty envelope glue taste. Do you have any tips of your own? Share it with us here in the comments.
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