Accounts payable process? Check all the detail to boost your business

Singapore is home to many different businesses, and for years it has been one of the most stable and most active economies in the world. The various businesses in Singapore have put it on top when it comes to economic conditions worldwide. This is because Singapore has one of the most business-friendly policies and regulations when it comes to transactions. It is not only favourable for local businesses but also foreign investments. Businesses have been the pillar and solid foundation of Singapore’s economic standpoint. Also many businessmen doesn’t know about what are the best practice about Accounts payable process

Accounts payable process
Source: botkeeper

This is why there are still many businesses and investments that are coming in Singapore. With an economy as saturated and crowded as Singapore, many financial matters need to be addressed. Aside from the legal requirement that is mandated by the law, it has a situation. This is to make sure that everything is in check and updated. Keeping everything checked and updated would help a company monitor its financial transactions. Also loss of money can be avoid. One of the most important things when it comes to business financial matters is the accounts payable process.

What are Accounts payable?

Let’s take an example when a private or government company purchases any goods and material from a supplier on cash/creditor that needs to pay back in a short period, so this whole process and its accounting entry is called Accounts payable.

It is all handled by the AP department and responsible for making additional payments which the company owns to suppliers or another creditor.

Most businesses have suppliers for raw materials and other goods that need a product to be made. These raw materials are outsourced from other companies, which are called suppliers. When outsourcing vast volumes of raw materials, it may be hard to monitor. That is why an accounts payable process or system is require. The accounts payable consists of everything that a business owes to its creditors or suppliers. This includes the full spectrum of deaths from freelancers to big companies. 

What is the Account Payable Process?

Accounts payable is a liability to a business since it is the money going out of your business. However, accounts payable make sure that there is an easy flow of financial matters in your company. An accounting services provider Singapore firm handles an accounts payable system.

Accounts payable process
Source: accountsjunction

This work is usually included in the accounting services Singapore price that you are paying for. No more, let us talk about the charges payable process provided with a hunting services Singapore firm you are hiring.

Receiving invoice or bill details

An invoice is a document that contains all the products that you have as a supplier. This includes the quantity, price, and date of payment that needs to be settled. The invoice usually comes after the order. The product doesn’t necessarily have to be delivered already for the invoice to be sent. 

An accounting services provider Singapore firm is the one to handle the invoice. This way, all invoices will be collected and kept in an organized manner. Regardless of the accounting services Singapore price that you are paying for, keeping these important documents is a must for every accounting services provider Singapore firm.

Review bill details

When the invoice is sent, you have to review the details of the products that you ordered. It is essential to do this because sometimes there will be some discrepancies or unwanted mistakes. Once an accounting services Singapore firm has received and confirmed the invoices, your company now owes the supplier that amount of money. That is why before the accounting services Singapore firm looks for the detail in the invoice, it must be thoroughly reviewed. Hiring more efficient and well-trained experts may cost you more accounting services Singapore price; however, you can be sure that you can avoid these kinds of problems.

Update charts or sheets

Once the accounting services Singapore firm has received and confirmed the products you ordered, the master list or records must be updated. This is to ensure a more efficient accounting. Most of the time, those that charge higher accounting services Singapore price can deliver more efficient and updated accounting services. This also includes being able to edit and keep track of everything. That is happening that concerns the accounts payable section.

Make timely payment

After this, you are paying on time is a must. This is to ensure that you can keep good relationships with your supplier. This also builds trust between you and your merchants. Since the details are already written and the invoice, you can know when to pay and not miss a payment deadline. This would be the duty of the accounting services provider Singapore entity that you hired. Making payments on time without miss makes the accounting services Singapore price that you are paying for worth it.

To ensure the company fund and cash are safe, the accounts payable increase their security in their system. It would make all the transactions secure.

It is all handled manually also has the accounts payable process that should have internal controls too.

  • prevent paying a fraudulent invoice
  • avoid paying an inaccurate invoice
  • avoid paying a vendor invoice twice
  • be sure that all vendor invoices are accounted for

Summary

Make sure that you are making payments on time by hiring the best accounting services provider Singapore firms. WLP Group is an accounting firm that offers the most affordable accounting services. Singapore price also provides the highest quality of service. Contact us today to know more about our services.