Accounts Payable

Accounts Payable

What is Accounts Payable?

Accounts Payable represents short-term liabilities recorded on a company’s balance sheet. When a business purchases products or services without immediate payment, the amount owed becomes part of accounts payable until the payment is completed. The AP department ensures that every invoice is verified, approved, and paid correctly within the agreed payment terms.

Accounts Payable Process

The accounts payable process usually follows these steps:

• Purchase Order Creation : A purchase order is issued to request goods or services from a supplier.
• Invoice Receipt : The vendor sends an invoice after delivering goods or completing services.
• Invoice Verification : The invoice is checked against the purchase order and delivery details.
• Approval Process : Authorized personnel approve the payment.
• Recording the Transaction : The invoice is entered into the accounting system.
• Payment Processing : Payment is made through bank transfer, cheque, or online payment methods.
• Record Maintenance : Payment records are stored for auditing and financial tracking.

No matter the size of your business, finance is a critical piece of the puzzle. As you grow and continue to process more transactions every day, you must have processes to handle both Accounts Payable and Accounts Receivable. Not doing so means you risk not paying all your bills or not being paid for all the goods and services you provide. SKYE Blue Agency's Mission is to help organizations run their business process more efficiently and profitably with their AP & AR Functions.

As the market shifts toward using online technologies, businesses must adapt and renovate their services to competitors. The benefits of hiring accounts payable outsourcing firm that will save you money may surprise you.

It takes much time and labour to review invoices for errors. Many companies are using outsourcing payable outsourcing firms, and they find that they save up to eighty percent on the cost of labour alone. Additionally, they save money related to errors on invoices. This takes up too much valuable time to improve the company and consistently increase profits. Businesses that take advantage of accounts payable processing services report saving as much as $60 per invoice on error correction alone. SKYE Blue Agency has the innovative technology necessary to catch errors and correct them while still saving client's money.