The strength of a company’s accounts payable and accounts receivable departments has a much greater impact than many people realize. After all, accurate accounting tells the story of how a business earns and spends its money. Without these reports, business owners and their representatives would act blindly and not always in the best interest of the company. However, accounting practices are also highly prone to error.

Below are several ways to make the process as efficient and error-free as possible.

Process Checks in Batches

Processing individual payments is time-consuming and does nothing to improve productivity. A better idea is to select a few dates during the month and process all checks and other forms of payment accumulated since the last batch run in one large customer credit. Every member of the accounting staff should know about these dates to avoid the possibility of making emergency reimbursements and unscheduled trips to the bank.

Automate Accounting Tasks Whenever Possible

While you shouldn’t plan to turn over the tasks of accounts payable or accounts receivable to a machine, accounting software can help you to automate several repetitive tasks. Some examples include using an electronic rather than paper version for invoicing or purchase requests and approving spend amounts that fall below a specific guideline.

Don’t Bend Deadlines for Others

People who work with numbers for a living are accustomed to abiding by strict deadlines. Unfortunately, employees who rarely deal with the financial aspect of running a company may not place the same value on getting their submissions turned in on time. Reimbursement requests and invoices that come in late put the accounting department behind as well. If late submissions continue to be a problem, companies should look at whether existing policies are well-defined and fair. If not, changing the cut-off dates could be an appropriate solution.

If you’re looking for greater financial insights into managing your business, we invite you to contact Goldendale Capital to request a consultation.