In the 3rd Accounting Clarity for Entrepreneurs tutorial, we covered what to look for on the balance sheet when handling your business’ bookkeeping and accounting. One overlooked part of the balance sheet is aged payables.
The aged payables report provides a glimpse of payments that are due for your business. As you review this, just take a look and make sure you are on track to pay on time and have a system in place for making payments efficiently.
If you are falling behind on payments, take a critical look and find out why.
Is it because of cash flow challenges?
Is it because of poor systems?
Addressing this before payments fall several months behind will save you money if you’re at risk for fees and may save you relationships if vendors and partners choose to no longer work with you because of late payments.
View the aged payable report as shown using Xero Cloud Accounting software in the video below!How Kahuna Accounting Can Help Your Business
If you missed our lesson on account receivables, watch below to make sure you aren’t leaving money you’re owed still on the table!