Entrepreneurs of small businesses don’t pay too much attention to account payables. Core activities like marketing, production, distribution and customer service take up much of their time. However, prominent industry experts explain this trend can prove to be detrimental for these businessmen. It can have an adverse effect on their establishment’s cash flow position. They won’t have the money to exploit new opportunities coming their way.
Moreover, improper accounts payable management can ruin their commercial relationship with their vendors. In the worst-case situation, these proprietors may not get access to the credit they require. This can harm their organization’s growth prospects.
Arnon Dror ct – How can entrepreneurs improve their account payable position?
Arnon Dror is among the few financial experts in America with impressive track-record of restructuring loss-making companies. This MBA graduate from the University of Hebrew is the former Vice-President of US Channel Group. He has over 2 decades of valuable experience in the field of international business and finance. This result-oriented executive is a specialist in many diverse fields. This includes international taxation, ERP integration, cash flow management, internal control, corporate mergers, and strategic planning. Throughout his illustrious career, he has the privilege of holding senior posts. These include Senior Executive in charge of Operations and Chief Financial Officer.
The Arnon Dror ct team of experts explain entrepreneurs need to take proper measures to improve their organization’s account payable. This goes a long way in strengthening their cashflow position. They have enough money at the disposal to take advantage of lucrative opportunities. This is a fact which they can’t dismiss outright. He suggests they implement the following 3 important tips to achieve this objective:
- Come up with a suitable core strategy
Entrepreneurs need to come up with an effective strategy to streamline their account payable. These businessmen need to devise a suitable plan. This can help them determine how often they are going to clear their vendors’ dues. Such a scheme should lay down rules on how they are going to scrutinize their suppliers’ bills. It should also contain a mechanism to resolve disputes resulting from discrepancies.
- Enter into negotiations with suppliers to adopt suitable automation portals
Entrepreneurs should enter into negotiations with their key suppliers to adopt a suitable automation platform. Taking such a step long a long way in streamlining their supply chain. This makes it easier for such businessmen to make bulk purchases from such vendors. However, this system should contain sufficient safeguards to prevent frauds, discrepancies and costly errors.
Many entrepreneurs may find scrutinizing their suppliers’ takes up most of their time. This makes it very difficult for them to focus on other important areas of their business. In such a situation, they may consider it prudent to outsource this activity to the third party. However, they need to ensure this service provider has a good reputation in the market. Only then can they get value for their money.
Entrepreneurs have got to understand an important fact say the Arnon Dror architecture team of financial experts. Proper account payable management goes a long way in improving their commercial relationships with their vendors. In the process, they get the money they need to operate their businesses. Implementing the above 3 steps can help them in this endeavor.