When you are managing accounts payable, you need as many payment methods as you can find. There are a few tips below that will ensure you can make payments easily, save money, and save time for your business. Ensure that you know how to pay all your vendors properly, and remember that making payments during the day is the only way to keep your business operational.
Business checks can be used to make payment for all services rendered, and you can mail these checks to your vendors without any issue. Because of this, you can print a check through your accounting program, print the envelope with the proper address, and mail the check as soon as possible. The program works with any printer that you prefer to use, and you can use a printed signature to avoid signing hundreds of checks every day.
You can even print postage for your envelopes, schedule a pickup for the letters, and send out checks the same day they are printed. You can even buy special checks that have your company logo on them. This might be helpful to you if you print your payroll checks in the same manner. You can get a color-coded check to use for payroll, vendors, and miscellaneous items.
You can pay cash to vendors when they arrive with products. You may send drivers or staff members to a vendor with cash, or you could pay cash when you have a meeting with the vendor. Paying cash is the best way to make a payment when you would like some preferential treatment.
Ask your vendors if they will give you a discount for a cash payment, and explain to them how much the discount will be if you pay cash early. You can leverage cash to save your company money, and you will find that it is very easy for your company to function because you are only buying things that you can pay cash for.
Money Orders/Cashier’s Checks
Money order or cashier’s check is a good way for you to make a payment because the vendor can immediately cash that check and add it to their account. These are secured forms of payment that come from a bank or other recognized entity. You can go to any office near your company headquarters to get the money order or check that you need, and you can deliver it by-hand to your vendor.
If you are mailing these checks or money orders, you could send them via certified mail. You could request a signature if you are shipping the check through a parcel company, and you will get a receipt for the payment that you made. This is a simple way to track your payments, and you can take out the money immediately so that you do not need to wait for the vendor to cash your check.
Online Payment Portals
AP invoices can be paid online when your vendor offers a simple and secure portal. The portal can be used to make a single payment, or you could set up your accounting software to access the portal remotely. Your accounting software can send the payment at the exact time that you have specified, and you need to make sure that you ask your vendors if they are using an online portal.
When you use online portals, you get a receipt for the payment. Plus, you can use the online portal to ensure that you can make a payment with notes. You can add a comment to the payment you make, and you will get instant results because of the portal loads quickly.
You can get financing through your vendors, and you must ensure that you have chosen the financing package that offers you the lowest rates and best terms. A good financing package will ensure that you can get your products right now. Plus, you can pay the financing company instead of your vendor. Your vendor does not need to deal with your payment plan, and you could continue to finance your products or services as much as you want.
You can use all the options above to make payments to your vendors. Plus, you could use a business credit card if you want to get rewards for all the things that you buy. You must ensure that you have found a credit card that will give you rewards you want, and you can use the card instead of vendor financing if you like. You could link the payment portal with your account program, or you could pay cash because your vendors offer a discount for cash payments. No matter which payment methods you use, you can manage your money better if you consider every option.