Creditors are the people or businesses you owe money to. These are the people you have purchased goods or services from. They will send you an invoice at the time of the purchase which will have the payment terms on it, and ideally, they will send you an end of month statement also.
Regularly we see businesses that don’t reconcile their creditor statements and don’t enter their creditors into their accounting software.
This results in a couple of situations where either you forget to pay your supplier or you only pay them when they chase you and often we see the situation where people have been paid more than once because there was no system in place and no creditors reconciliations being completed. This also makes it incredibly difficult to ever know where you stand financially and manage your cashflow.
While we would like to think that if you overpay (or pay twice) an invoice, the creditor (supplier) will refund you the money, sadly that is not always the case.
Let us help you put the systems and processes in place to have a great relationship with those suppliers by paying them regularly and know your correct financial position by paying the correct amount. 3rd Arm Admin can either do this for you or help you put the systems in place by:
- Ensuring invoices are received and entered in a timely manner (we can also help you automate this by using software such as ReceiptBank)
- Monthly Creditor Reconciliations
- Providing Aged Payables Reports
- Setting up the payments ready for you to approve
- Helping to manage staff or your own expenses and set up the processes to do so