WHAT IS ACCOUNTS PAYABLE?
Think about all of your business’s payables – utilities, vendor payments, office supplies or subscriptions. All of these elements go into what is commonly known as AP, a vital process that keeps track of your liabilities.
AP is your company’s payments management system. It deals with everything regarding outflow, and it monitors all payables. This makes a tremendous impact on your activity because it is like having a personal secretary who deals with one specific topic, so that you can advance your activity.
Monitoring your outflow process keeps an accurate image of your financial capabilities and it helps you make the best choices to boost your operations. Knowing how to manage the money you get is important, but knowing how to manage the money you owe is crucial, and this is where AP comes into play and saves the day.
WHY YOU NEED IT?
By showing you the exact amount of payment you owe and, most importantly, what is the due date of the liabilities, an AP software will give you the possibility to use your resources to the maximum.
Building trust is one of the best ways you can improve the relationship with your vendors. An AP department will make sure you never delay or miss a payment, thus helping you achieve that trust.
Avoid penalties, complaints, and errors with the help of AP. This system is processing records, tracks your invoices, and manages your payables timely and accurately, so that you can breeze through the tax season.
Having a true and clear image of your financial capabilities will allow you to make the best choices for your business, without risking its integrity. By correctly managing AP, you will get that clear image.
WHAT IT DOES?
The AP process established by our professional bookkeepers will record and monitor every liability. If you owe it, the AP knows it. The process of AP management involves the following elements.
Keeping track of all these payments and payables can be a tedious and time-consuming process, but its importance is monumental for the well-being of your company. Contact ProLedge’s consultants if you’re looking for professional AP services.
WHY ProLedge?
Here at ProLedge, we ensure your AP documents and liabilities are well managed so that you can focus on making the best decisions for your company. We are a team of dedicated bookkeeping professionals ready to help you grow your business.
OUR LOCATIONS
We provide AP solutions for businesses from all over the country, and we can do it for you too! You can find us in some of Texas’s biggest cities, but we can offer you the same professionalism and expert results you need, online.
Here’s where you can find our offices:
OUR SERVICES
Here at ProLegde, we offer complete AP solutions, so that you can find the answer to all of your needs in one place. We work online and offline so that you have access to professional services from wherever you are.
We can train you and your team to use QuickBooks like a pro. Our one-on-one training and follow-up Q&A sessions will answer all of your questions.
We can manage your inflow of money so that you’re always one step ahead and able to make the best financial decisions and expand your activity.
Our account reconciliation process makes sure your tax reports are accurate and correct so that you can relax during the tax season and turn them in worry-free.
Reduce the risk of penalties and errors with our expert assistance. Our team of qualified bookkeepers can offer you professional services.
Eliminate errors and increase efficiency with our payroll integration service. This process ensures your employees are paid correctly and on time.
We offer professional assistance and expert advice. From tracking transactions to preparing financial statements, we offer you complete solutions for your needs.
Don’t lose on the benefits of double-entry formula because it is hard to do it. Let our professionals do it for you while you reap the results!
We can make the stress of monthly bookkeeping go away. Our recurrent services make sure your documents are well managed so you can focus on running your company.
THE STEPS OF ACCOUNTS PAYABLE PROCESS
The AP procedures are simple, but very detailed. The accounts payable process starts with an accounts payable invoice. The entry of a piece of paper showing payables or liabilities in your workspace signals the start, and the first thing you have to do is record the document in the balance sheet. This step is where most mistakes occur. It is important that you pay close attention to this process to ensure there are no double entries for the same liability and that the data inscribed is correct.
Once you’re done with AP invoicing, the next step in the process is three-way matching. This involves cross-checking all of the elements on the invoice with the details of the purchase, to make sure everything is correct and that the bill is issued in response to an actual acquisition. After the details have been checked, the AP document travels to managers to obtain payment authorization. This is done in order to prevent fraud. Once it obtained the internal approval, it moves to the next step in the process.
This step involves the processing of the invoice. After they have been checked and approved, the payments are scheduled in order to meet the vendor’s deadline. This is the step in which the AP ledger gets updated in order to reflect the upcoming payment and all of the accounts payable expenses that have been cleared. You should also remind your vendors, at this point in the process, that the payments have been issued for the liabilities. If you’re using an AP automate process, it will do it automatically.
The last step of the accounts payable process involves the collection of all documents that prove the purchase. This is also the time you should reconcile any existing and open accounts you have. You do this by examining every single transaction from your general ledger against those from the bank and mark any inconsistencies, discrepancies, or errors. This process will help you keep a clean and accurate account of your AP transactions in the balance sheet, and it will show you if there are any mistakes in the process so analysis can be promptly done.
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Managing AP doesn’t have to be difficult. Not when you have experts on your side. Contact our team and work with professionals to get the best analysis of your documentation.
FAQS
Because they are payables, as we have seen in the examples of accounts payable section, they are regarded as credit in the accounting system and are considered a liability. Once the payment is made, multiple accounts are changed in the process. The AP decreases (to showcase that payables are cleared) and is debited. Then there is the cash account which is credited to reflect the outflow of the money. Using the double-entry formula helps you keep track of your AP transactions in your balance sheet and it ensures the accuracy of your payable and receivable data all throughout the process.
An Accounts Payable invoice represents a company’s payables, as we have seen in the “what is accounts payable” section. All of the entries are going to be recorded as a liability in the balance sheet. An AP expert will make sure the process is well recorded in your financial statements to help you during tax season.
An AP automation software is a program that allows you to automate the AP process. This system can help with many functions and with all of the aforementioned four steps of the process, including AP invoicing. Relying on an AP software to manage liabilities can reduce the number of human errors in the entry, it can speed up processing, it can track and schedule AP payments, and it can overall improve the quality of the AP work.
The Accounts Payable vs Accounts Receivable debate is what helps you ensure the good processing of cash flow. However, the two elements are opposites in terms of action and role. Don’t let that intimidate you, the formula is simple. AP regards the outflow process; it deals with the payables, and it is recorded in the general ledger as a liability. On the other hand, Accounts Receivable is related to the inflow process of your income statement, it deals with the receivables, and it is recorded in the general ledger as an asset. In order to maintain a good cash flow administration, a business must perform both the AP and the AR process.
Yes, our experts here at ProLedge are trained in both AP and AR processes so that you can have access to the full package and get the whole AR and AP experience. With our complete process, you will not have to choose between the two and risk compromising your cash flow. We have experience in the management of both accounts and we can help you with the two of them.
TESTIMONIALS
Working with ProLedge means professionalism and dedication. Check out what our clients had to say about our bookkeeping services!
We’ve been working with ProLedge for three years now and as a small business owner, their service has made a huge impact on both the accuracy of our bookkeeping and allowing us to focus on the things that we do well. Working with ProLedge was one of the best decisions we’ve made, and highly recommend them!
Using Proledge Bookkeeping Services to handle our bookkeeping has been excellent. My CPA focuses on year end tax planning and strategy and Proledge makes sure our books are clean and transactions are all accounted for. I’ve been a happy client for years now and they have always been easy to work with, transparent, and prompt in responding to any questions. Highly recommend!
I really like this company. They came to my rescue 3 years in a row, with my backed-up bookkeeping needs, in a timely and professional manner. It’s been a pleasure and a breeze working with Rebecca. I’m happy to have retained their services. I highly recommend them.
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We can help you with the AP process, from A to Z. Contact us if you want to grow your business with the help of AP professional management.
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Melissa K is an absolute GEM to work with. She’s been working with my company since the early stages and has provided a competency that I don’t for granted. Knowing that the company books are tidy, correct, and easy to understand is the ultimate security for a startup in my opinion. Melissa is definitely a part of the team and we’re happy to work with her as we grow!