We have created a series of help guides so you can keep your finger on the pulse of your business finances. The guide will be centred around useful terms, Xero software and how they can help you run your business better.
This week we are starting with the term ACCOUNTS PAYABLE, it’s another term used when you owe an amount to a creditor for goods or services and they have sent you an invoice you’ve not paid yet.
Do you know how to access your ACCOUNTS PAYABLE report on your accounting software? If you use Xero follow the process below, if you use any other package such as Sage or Quickbooks you should always contact your accountant or bookkeeper for help.
If you use Xero it is as simple as ACCOUNTING – AGED PAYABLES SUMMARY
The report will show the snapshot as at today but you can change the date to show what you’ll owe next week, next month etc as long as you have entered the invoices. You can also change the settings to show additional information in the report to help you.
How often should you run the report?
You can run the report as often as you like but we would recommend that you run the repot at least weekly and if you receive statements from your suppliers don’t forget to compare the statement with your report, you can make sure you have entered everything or to check your supplier hasn’t invoiced you in error.
Do I need a software package?
Well, no you don’t BUT imagine how long it would take you to collate this information manually. You’d be better spending your time doing what you love doing in your business instead of pulling this kind of information together.
If you don’t currently use a software package consider starting to use one now to keep your books and records in one place and to make your reporting easier. Don’t think you have the time to maintain it? Consider outsourcing your bookkeeping to a professional so you can concentrate on what you do best.
At Seamount we utilise technology so you don’t even have to put the documents in an envelope to send to us.