Your company likely relies on credit to pay vendors, which helps you create profit in the long run. It’s essential to stay on top of expenses so that you manage your cash flow and prevent overspending. A streamlined accounts payable process helps you do so.
As an accounts payable services company, Compass East optimizes your accounting with our bottom-up approach. Choose our outsourced billing solutions to improve accuracy and drive insights for your company’s growth.
What Is Accounts Payable?
Accounts payable (AP) is a general ledger account that describes a company’s obligation to repay short-term debts to suppliers or creditors. A business’s accumulated debts appear under current liabilities sections on balance sheets.
Companies use AP as an IOU to their vendors and creditors. These debts are considered liabilities because it’s money that will be lost. Often, companies will pay off these debts from a designated expense account.
Accounts receivable (AR) is a phrase often associated with AP, and it’s essentially the opposite function. Rather than money your business owes, AR is the money owed to your company by consumers.
Why Is Accounts Payable Important?
The most valuable aspect of accounts payable is its connection to your entity’s financial health. If you’re spending more on credit than you’re earning, your company won’t survive. The comparison of AP from quarter to quarter can help you determine how your supplier spending relates to the money you earn from your consumers.
As an essential aspect of cash flow, accurate AP determines performance and offers you and your stakeholders peace of mind. It can also help you maintain strong relationships with your vendors. These companies provide valuable products and support your business needs so you can thrive. If you maintain a strong record of repaying credit debts, you build trust with your suppliers, which may lead to more favorable contract terms.
Outsourced Accounts Payable Solutions From Compass East
At Compass East, we use a bottom-up process to enhance your basic accounting practices. With our reliable accounts payable and billing services, our team will:
- Code expenses correctly: To make use of your budget, you need to accurately code expenses. When you understand what money went to which department, you can quickly compare budgets to actual spending and make adjustments for future expenses. Our certified public accountants (CPAs) will examine your records and make corrections as needed to support accuracy.
- Develop new processes: Once we’ve cleaned up your existing records, our team will develop new processes that introduce efficiency and ease in AP. We keep your entire team accountable for these new procedures to ensure smooth operation from day to day.
- Implement technology: With our cloud-based technology stack, we can add advanced software to our processes for further accessibility and improved accuracy.
- Eliminate manual processes: Writing checks repeatedly throughout the day can add up to a lot of lost time. With Bill.com, we can automate billing to ensure everything is paid on time without the manual labor of writing checks.
When our process is complete, you’ll have a reliable method for tracking your debts to vendors. Our process helps you maintain strong vendor relationships while keeping credit usage in check.
The Advantages of Outsourced Billing Services
Outsourced billing solutions from Compass East can help you maintain financial health without overextending your operation. With our services, you can:
- Cut costs: Developing an in-house team to address your accounts payable requirements comes with expenses. Between payroll, training, benefits and office space, an internal team may seem like more money than it’s worth. Compass East provides the accounting support you need without the long list of expenses.
- Save time: Managing your accounts payable is an ongoing background process, regardless of your company’s size or industry. When you handle it on your own, you may find you’re dedicating more company time to accounting needs than growth initiatives. Win your time back with billing and accounts payable services from Compass East.
- Introduce technology: Our cloud-based technology stack introduces ease and accessibility to accounting processes. Pair our technology with our process adjustments to manage accounts payable more efficiently.
- Increase accuracy: With the professionals and technology solutions at Compass East, you can create an accounts payable process that’s consistent and reliable. Proven and repeatable processes support accuracy every quarter so that you can monitor performance and build relationships with your suppliers.
- Manage cash flow: Understanding the money going in and out of your business gives you a clear picture of your financial status. With AP handled by the financial professionals at Compass East, you can stay connected to your cash flow and make more informed financial decisions.
- Grow your business: Accurate accounts payable gives you the historical financial data you need to make valuable future projections. Find out where your company stands and invest in high-growth projects for entity development.
Our outsourced accounts payable services only account for one of our many financial solutions. Once our team helps you establish a reliable accounts payable process, you can count on us for your growth strategy. With services like KPI development, cash flow management and financial modeling, we can give you the tools you need for success.
Optimize Your Financials With Compass East
Compass East is more than a third-party accountant for high-growth businesses. We’re your partner in financial growth. Our team takes a bottom-up approach to optimize your company for the long term.
While we improve your existing records, we also implement proven processes designed for ease and efficiency. Our access to cloud-based technology enhances daily tasks, and our team of financial experts brings broad experience to your operation.
We bridge the gap between financials and accounting to develop powerful insights. With accurate historical data, our team can create financial projections that improve your growth initiatives. Regardless of the size of your business, we scale our solutions with your enterprise.