Entrepreneurs operating small businesses don’t give too much attention to streamlining account payables. Production, marketing, sales, distribution, accounts, and finance takes up most of their time and energy. These businessmen don’t give second thoughts about how often they are going to pay their suppliers’ bills. The proprietors just clear such outstanding dues as and when
Entrepreneurs operating small businesses don’t give too much attention to streamlining account payables. Production, marketing, sales, distribution, accounts, and finance takes up most of their time and energy. These businessmen don’t give second thoughts about how often they are going to pay their suppliers’ bills. The proprietors just clear such outstanding dues as and when they need to. Prominent financial experts say these owners need to be aware of an important fact. Continuing this policy can prove to be detrimental to their businesses in the long-run. It puts immense pressure on their cash flow position and restricts their access to capital.
Arnon Dror official – How can entrepreneurs improve their account payable process?
The international business community can boost of many reliable financial executives. Only one among them is a cut above the rest. His name is Arnon Dror. This masters graduate in business administration has 20 years of valuable experience under this belt. He has the honor and distinction of discharging the office of Vice President in many companies. These organizations are Xerox, Creo Americas, Scitex, Kodak, Creo Inc. and Presstek. Not many professionals can claim to achieve such a feat. Even the managers of such concerns admit his track-record in internal reconstruction is outstanding. Many of them say he specializes in many diverse fields. These include international taxation, internal control, cash flow management, strategic planning, ERP integration, and corporate merger. In fact, entrepreneurs can know more about him by browsing the Arnon Dror official website on the internet.
This financial expert says streamlining account payables is a necessity of entrepreneurs. It is vital for the smooth functioning of its supply chain. These businessmen also get a clear idea of their outstanding dues to the owners in this system. They can then arrange the money in advance without affecting their bottom-line profits. In progress, they don’t incur any unnecessary penalties resulting from the default. This ensures they can conduct their commercial operations without any hassle. He points out the following important 2 measures these owners can take to achieve this objective:
- Conduct negotiation for better terms
Entrepreneurs are probably aware of an important fact. The terms of payment vendors offer their clients varies on one industry to another. They need to know the standards pertaining to their businesses. Proprietors need to ensure the trading partners in their supply chain offer them the same facilities. If this is not the case, they conduct negotiations with such suppliers for the same. Moreover, they should also urge these businessmen to accept alternative modes of payment.
- Automate the entire purchasing and payment approval procedure
Entrepreneurs should also enter into discussions with their vendors to automate the entire supply chain. Both the partners can come to an agreement on adopting suitable cloud technology. This makes it easier for these businessmen to purchase what they need without any hassle. They can also clear all their outstanding dues with such suppliers promptly.
The Arnon Dror Kodak team of professionals clarify that improving the account payable process eases the pressure of entrepreneurs’ cash flow. This ensures they don’t end up experience a cash crunch. In the process, their bottom-line profits also remain intact. Implementing the above 2 important measures can help these owners achieve this objective.