Tracking What you Owe – Accounts Payable
Tracking What you Owe - Accounts Payable Whenever I meet with a potential client for the first time, I always start off by asking two simple questions: “What are some pain points in your business?” and “What do you want from your accounting system?” Accounts Payable When I asked these questions in my most recent meeting, the client answered by saying he has no idea how much he owes his vendors, or when those payments were due. Currently, they just record a check, posting it directly to the expense or liability account. This reminded me that not all business owners and bookkeepers understand the many benefits of entering bills as accounts payable. Even if your reporting method is cash basis, you can still use accounts payable as a way to track what is owed and when it’s due. Benefits of [...]
