The trade payables are often found in a company. This trade payable is basically an obligation for companies that make purchases of goods on credit from other parties. Generally, accounts payable occur because the company purchases raw materials. Or it could be that the company pays off accounts payable for buying finished goods to support the company’s operations. Accounts payable are generally not recorded at the time the order is placed. This is also where accounts payable automation control is needed.
However, the recording of this trade payable is done when the ownership rights of the goods are transferred to the buyer. Of course, the purchase is in the form of credit so that the credit must be immediately closed by the buyer. However, if when purchasing goods there is a cash discount, then the accounts payable must be reported for the Amount of trade payables that have been deducted by the Amount of cash discounts.
Process Accounts Payable Automation
The account payable process will run effectively and efficiently if there is timeliness in its implementation. Accounts payable along with payment of accounts payable should be done properly. Punctuality is very important and also affects the success of a payable account. The timeliness will also show the credibility of the company and show how big the role and responsibility of the company is. If the credibility and responsibility of the company are considered good, then of course the process of account payable will be faster and easier.
However, it is necessary to control the accounts payable so that the accounts payable process is not too excessive. It is necessary to streamline the accounts payable in a company. With this control and streamlining, a balance sheet can occur. Accounts payable can be controlled so that the company will avoid large debts and avoid losses. Therefore, it is necessary to control and manage accounts payable so that accounts payable can run more effectively and do not cause losses to the company. In addition, controlling accounts payable can also be useful to reduce the company’s expenses so that it is profitable for the company.
Responsibilities of Accounts Payable Staff
An account payable staff has special responsibility for the balance of the company’s cash flow through accounts payable automation. To maintain the balance of this cash flow, the accounts payable staff can coordinate with other divisions such as the marketing division and the warehouse division.
Account payable staff should also ensure that documents and records related to purchases have been analyzed and checked properly and thoroughly. Every purchase must be recorded properly and clearly so that the company’s management can get a clear report. Not only purchases but also any payments made to accounts payable must also be clearly recorded.
However, basically, finance is the most vital thing in a company. Therefore, it takes staff who have good skills in analyzing all matters relating to company finances including accounts payable. The ability to communicate and convey information to the leadership is also needed so that the leadership can understand the company’s financial condition. With qualifications and responsibilities from accounts payable staff, the accounts payable management process can run better.
From the above review, we can see that the existence of accounts payable automation has a huge impact on the survival of the company in the digital era.
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