Accounts payable

 

Accounts payableAccounts payable is the amount of money that a company owes to its vendors for goods and services purchased on credit. It is a current liability of a company and has to be fulfilled within a year.

 

Accounts payable result in negative cash flow of a company at the time they are paid off. Every company keeps a track of its accounts payable and also the time period when it is to be paid.

 

Accounts payable reconciliation & management can be a time consuming process and can take a long time to resolve discrepancies. Large organizations therefore use accounting software or take the help of professional accounting firms for managing its accounts payable. A close check should also be made on fraudulent invoices, to prevent embezzlement

 

Outsourcing the accounts payable process can help the organization by

 

  • Providing a method of internal control
  • Providing expense administration
  • Providing monthly reconciliation of accounts payable
  • Saving time and man hours
  • Preventing fraudulent invoices
  • Preventing overpayment and duplicate invoices

 

 
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