Managing AP and AR
Best Accounting Practices for Managing Accounts Payable and Receivable Effective Accounts Payable (AP) and Accounts Receivable (AR) management is critical for maintaining healthy cash flow, minimizing financial risk, and building strong business relationships. Whether you're a growing startup or an established enterprise, optimizing your AP and AR processes leads to improved profitability and operational efficiency. In this blog post, we’ll explore the top best practices for managing your AP and AR functions effectively. 1. Master Data Management: The Foundation of Accuracy Accurate supplier and customer data is crucial. Establish strict controls around the creation and maintenance of master data to prevent duplicate or incorrect records. Clean data reduces the risk of payment delays, invoicing errors, and reconciliation issues. ✅ Tip: Implement approval workflows for creating or editing master data entries. 2. Implement Transaction Approval Workflows All invoices, credit note...