Supplier Payment Management
In many businesses, margins are very tight. Your suppliers can have a large impact on your margins. For example, if they ship their products to you late, then you may need to pay extra freight costs to ensure your customers receive their products on time. Another example, if your machine breaks done, your supplier can choose whether they fix the machine quickly or slowly. This can dramatically change the output that your business can achieve. As a result, the management of your suppliers is critical.
There are many parts to your supplier management. These include:
- Knowing what your business requires
- Sourcing suppliers
- Ordering from the supplier
- Receiving the services/products from the supplier
- Being invoiced by the supplier
- Paying the supplier
- Raising disputes with your supplier
Bizgro can ensure that the supplier payment process functions smoothly. This can be achieved by using software such as Xero, Reckon or MYOB. Once approved, suppliers invoices can be entered by our bookkeepers and payments then made. Payment can be made by using aba files which can be imported into your bank account and then you can authorise them before they are paid. Payments can also be made by Bizgro, or by Bizgro emailing you a list of supplier amounts that need to be paid and you can pay them through your bank account. By entering bills into the accounting software when they are received and approved, your business will know where they are in terms of outstanding invoices. As a result, cashflow can be managed more effectively.