Accounts Payable Services in Seattle
You can trust our skilled bookkeepers to keep track of the money leaving your business.
What are Accounts Payable?
A business’s accounts payable are the funds that a company spends on goods and services. This can be purchasing equipment, cleaning services, and other products from vendors. While running a business, it’s important to keep track of the cashflow leaving your wallet, to make sure that your company is maintaining a profit. An uneven percentage of funds leaving your business could mean that you need to consider what costs are valuable to your business, and which aren’t. When you have a bookkeeper keeping track of these amounts, it becomes easy to see what costs are helping you succeed, and which might need to be reconsidered.
Examples of Accounts Payable Expenses
Every business has its separate needs and expenses, depending on its specific industry and size. Accounts payable expenses can look like, but are not limited to:
- Raw Materials- cleaning supplies, lumber, minerals, etc.
- Products & Equipment
Accounts Payable Process
The process of accounts payable can be broken into four parts. First, the data of the invoice must be recorded and captured. These details can look like amounts, items purchased, and details about the seller. When recording these, it’s critical that the information is in order, and correct, so that you’re always paying the right amount. At All About Businesses, our bookkeepers always organize your records correctly, guaranteeing that you’re paying each vendor the right amount, on time.
Once completed, this invoice must be approved, to guarantee its accuracy. Once approved by a bookkeeper, they will get authorization to complete the payment, and will pay with the approved method set up, whether it be through credit, check, or ACH. After authorization, the payment will be sent out. Checks must be printed, signed, and mailed, whereas credit card payments are a little simpler.
Accounts Payable vs. Accounts Receivable
What’s the difference between accounts payable and accounts receivable? Whereas accounts payable is the money coming out of your business, accounts receivable is the money you earn. Accounts receivable can look like funds from clients, banks, and even other companies. Although recorded in similar ways, they are very distinct from each other and can be easily remembered as the money that a company owes vs. the money that they earn.
Accounts Payable vs. Trade Payables
A common mistake in accounting for funds is confusing accounts payable vs. trade payables. All trade payables are account payables, but not vice-versa. Trade payables tend to deal more with inventory, such as supplying a brand of wine, or a clothing and food product. Since these payments tend to vary more than accounts payable, they’re not classified as a regular expense, putting them under the term “trade payable.”
Keep Track of Your Business Finances
When you allow one of our virtual bookkeepers at All About Businesses to manage your accounts payable, you’re guaranteeing that your bills will be paid on time, in the correct amounts. An organized system will improve your financial health and will facilitate lower credit interest, saving you money in the long run. With a bookkeeper keeping track of your payments and records, you have more time to focus on expanding your company, leaving the details to us.