Accounts payable is an entity’s short-term obligation to pay suppliers for products or services, which the entity purchased on credit. If accounts payable are not paid within the payment terms agreed to with the supplier, the payables are considered to be in default, which may trigger a penalty or interest payment, or the revocation of additional credit from the supplier.
From a management perspective, it is import to to have accurate accounts payable records, so that suppliers are paid on time and liabilities are recorded in full and within the correct time periods. Otherwise, suppliers will be less inclined to grant credit based on the entity’s accounts payable history. Banks will also be less inclined to grant credit to an entity with a slow accounts payable history. Overall, poorly managed accounts payable will affect your business credit rating.
We offer expense administration to manage payables, track tax documentation and good record keeping to maintain your good business credit standing. We will manage your bookkeeping system so you can better spend your time building your brand.
Keep your books accurate, and keep your valuable time – call us!
Diversified Management Services helps you track your liabilities to ensure an accurate balance sheet. Combined with Accounts Receivable management, your business payables accuracy are important to your balance sheet, income statement and regular monthly reviews.
We work on contract basis, so we are there only when you need.