Many small entrepreneurs don’t give too much importance to accounts payable. After all, they devote much of their time and efforts to other aspects of their businesses. These include selling their brand products in the market and collecting the amounts their customers owe them. On top of this, they have to delegate numerous tasks to their employees. As a result, such businessmen usually don’t discharge their obligations to their vendors immediately. They wait until getting the money from their debtors. However, they tend to overlook one important aspect. Their inability to pay their dues on time affects their credit score over time. This makes it difficult for them to obtain loans and other financial aid from institutional lenders.
Arnon Dror official How can entrepreneurs improve their account payable process?
Not many people specializing in the field of international finance can match the reputation of Arnon Dror. This senior executive is the former Vice-President (Finance) of US Channel Group. He has the honor of managing the company’s Xerox Technology Business division. His impressive career spans over 20 years. During this period has held responsible positions in many multinational companies. Many of his colleagues regard him as a result-oriented individual. They consider him to be an expert in many diverse areas. These include internal control, mergers, supply chain management, ERP integration, negotiations, and business modeling. If you browse through Arnon Dror official profile on the internet, you come across many significant facts. He has the distinction of turning many loss-making business establishments into lucrative concern. The success of such organizations is due to unique acumen and forecast.
This financial expert says entrepreneurs need to pay adequate attention to their organization’s accounts payable. Otherwise, they may end up wasting a lot of money. It could be in the form of penalties and unnecessary duplicate payments. This can take a heavy toll on their cashflow position. They may also end up losing reliable trading partners in their supply chain. To avoid such situations, they should consider implementing the following 2 important tips:
- Making it a habit of paying vendors promptly
Business owners delay paying their vendors until the due date of their invoices for a reason. To ensure there is enough liquid cash in their registers or tills. These proprietors may have sound logic. However, this professional explains it is not the correct strategy to pursue. It can damage the business relationship with such suppliers. Moreover, they cannot avail attractive discounts which result in cost savings.
- Negotiate for alternative means of payment
Entrepreneurs to enter into negotiations with their vendors to use new technology. The use of alternative means of payments can make it easier for both parties in many ways. These businessmen can adopt electronic transfer, internet banking or plastic money to prompt payments to such suppliers. Moreover, the latest advances ensure such modes of payment are secure and hassle-free.
Implement the above 2 tips can help entrepreneurs improve their accounts payable system. Taking such a step also helps ease the pressure of their cash flow position. You just have to go through Arnon Dror Wikipedia profile on the internet to clear your doubts. In the process, they strengthen their business relationship with their vendors and boost their credit score.