Less than 40% of companies survive the first five years. With the control of accounts payable, it is possible to avoid this statistic, since this tool is one of the main elements for the financial balance of any enterprise, be it small, medium or large.

After all, with this strategy, it is possible to know and organize all the expenses of a company, avoiding default or accumulation of liabilities beyond the financial capacity of the business.

In this content, you will understand how this financial management tool works and learn the best practices to increase productivity and efficiency in the sector.

Enjoy reading!

What is Accounts Payable Control?

To achieve the main objective of business activity (profit), it is necessary to invest in space, raw materials, employees, tools, etc.

We know that investing generates costs for the business and these costs, when not managed in the right way, can turn into true snowballs and harm the company's growth, and may even lead it to bankruptcy.  

Therefore, to avoid future problems in the cash flow of your business, it is essential to implement control of accounts payable. 

This strategy aims to organize, manage and record the payment of all the company's bills , avoiding delays, fines and interest.

What is the difference between accounts payable and receivable?

All expenses necessary for the company to be able to carry out its activity must be included in the accounts payable control. 

In turn, in the control of accounts receivable, all billing that enters the company's cashier must be present .

In addition, it is essential to implement a strategy that aims to manage both assets and liabilities - that is, the control of accounts payable and receivable. 

How to control accounts payable? 7 practical tips

1. Separate personal finances from the company

The first step towards the success of an enterprise is the separation of finances, even in micro and small companies.

With this strategy, you avoid using business income for personal commitments. In addition, with this separation, it is also possible to avoid the opposite: use of personal resources to fulfill the company's obligations.

So, the first (and fundamental) practical tip is to use an exclusive bank account for your business , directing all income to it!

2. Centralize account control

Does your company have several spreadsheets or notebooks for financial management? If so, you should abandon this strategy and centralize control in one place.

Thus, it will be easier to organize and consult the expenses of a given month or period, as well as the due date of each obligation.

We also recommend opting for an intelligent financial organization module, with cloud registration, enabling access to your accounts payable control worksheet from anywhere, depending only on an internet connection to access it.

3. Record all transactions

All expenses must be registered , regardless of their amount. This practice not only ensures efficient financial management, but also the success of the entire company.

After all, the finance sector is related (directly or not) with all the departments of a business. 

And when its management becomes inefficient, it ends up negatively influencing various sectors and activities, for example: cash flow , inventory control, measurement of results, among others.

For this reason, always register all transactions — whether their value is BRL 30.00 or BRL 3,000.00 — avoiding surprises and delays in payment at the end of the month.

4. Monitor cash flow

The cash flow serves to manage the payments and receipts of a company, being a fundamental part for the control of accounts payable , since it offers reports on all costs.

To ensure its efficiency, in addition to implementing this tool, it is also necessary to periodically monitor it, keeping track of its records and verifying the flow of money.

Thus, it becomes easier to identify all a company's expenses during a given period, as well as financial gaps - which must be filled as quickly as possible.

5. Invest in automation

Does the financial sector of your business have any technology that offers greater agility and assertiveness for the operation? 

Human errors can cause great losses to the company, putting its operations at risk and, as a consequence, its financial health.

Tools that contribute directly to the control of accounts payable or, indirectly, for example, to the management of suppliers , contribute to this financial department being able to act with high performance and delivering the expected results.

Not to mention that, by investing in automation, your company ensures greater employee productivity , who will be able to direct their focus and energy to other activities that imply business growth.

6. Do not use accounts receivable as collateral

Credit card sales are not always debited at the same time. In fact, the vast majority of institutions take up to 30 days to release the credit.

Therefore, do not consider this money as part of your available assets, especially when taking on new financial commitments, after all, unforeseen events can happen, preventing your company from fulfilling these obligations.

If necessary, it is also possible to resort to anticipating receivables , a resource that debits this outstanding credit before the deadline and has a reduced rate when compared to a conventional loan or other forms of credit .

7. Efficient supplier management

The secret to being efficient in supplier management is the automation of this sector by intelligent software.

Thus, all information and process flow will be gathered in one place, automatically and intelligently, allowing practical and quick access to this data by both parties.

Read too:

Payment of suppliers: how to negotiate new deadlines?

Discover Sky.Simple

With Sky.Simple it is possible to connect your system to a financial services layer and modernize access to credit, automating your accounts payable sector in a simple, agile and economical way.

In addition, your company now has advantages such as:

  • Control over titles that are released for anticipation;
  • Anticipation of receivables to its suppliers, with super competitive rates, regardless of the size of the business;
  • Account credit to the supplier within 6 business hours.

Understand better how Sky.Simple ! Click here and talk to one of our experts!


Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.