Accounts Receivable

Accounts receivable is the money owed to you by your customers which you are bound to receive as per payment terms. Often, this is also referred as the outstanding debtors or invoices.

Accounts receivable is vital to your business’s liquidity as it is considered as one of the assets that can be easily converted into cash. Which means that without good collection management procedures in place, you may find your organisation in short of cash flow. This is where we can help!

Some of our accounts receivable management practices include:

• Sending out monthly statements to your debtors to remind them of the amounts they owe you and when, exactly, they are due.
• Regular follow-ups on outstanding accounts to boost your collections and minimise the risk of incurring bad debts.
• We can issue sale invoices as per instructions to your customers.
• Allocating the payments you receive from your customers to the appropriate invoices.
• Evaluating your accounts receivable from time to time using constructive approaches like ageing receivable analysis and receivables turnover ratios.
• Sending you an aged receivable report on a regular basis.

Your cash flows are directly affected by how you manage your accounts receivable. Smart Figures works with business owners to accomplish and implement good control of accounts receivables.

Accounts Payable

In simplest terms, accounts payable is the money you owe to your creditors which you are obligated to pay as per their payment terms. 

When we talk about managing your accounts payable, it’s more than just making sure you are paying your debt when they come due. There is a process involved in cultivating good credit standing. For instance, reviewing your bills and expenses before entering them in the system will ensure the accuracy of your payable records. Hence, your suppliers will be paid correctly – no duplication or missing payments.

Proper monitoring of your purchasing activities helps you plan your cash flow as well. This will not only avoid overstocking supplies, but it also gives you an idea when exactly you need to buy goods to keep your operations running smoothly.

Part of our accounts payable management is meticulously recording your suppliers’ invoices and reviewing the GST component related to them. We pay attention to your bills’ credit terms and take advantage of the discounts offered to save you more money. We examine the statement of accounts from your suppliers regularly to confirm that there is no error made in their billings. When bills are due to be paid, we prepare payments for them and eventually liaise with your suppliers to inform them that your bills have been settled. Once payments have been processed, we then reconcile them into your suppliers’ invoices.

Using highly advanced accounting solutions, we can prepare and send you timely aged payables reports so you can envision the amount that you owe for a certain period of time. Having the right person managing your accounts payable can make a huge difference in your business and in the way that you work.