Functions and importance of the accounts payable department
Posted: Sun Dec 15, 2024 9:01 am
e explain how the accounts payable department works.
Learn the main functions of the accounts payable department and the software they use to optimize their operations.
Accounts payable are a form of interest-free financing for companies , so their proper management is essential for the financial balance of the company .
However, companies must comply with Law 15/2010 , of July 5, which establishes measures to combat late payments in commercial operations. This regulation college and universities email list specifies that they must not delay their payments for more than 60 days .
Download the FREE guide “The art of getting paid (on time)”
What are recurring payment and one-time payment? Post content
How to segregate administrative and accounting functions in a large company?
How to optimize the accounts payable department with technology?
Functions of the accounts payable department
Correct and timely payments are an indicator of a company's solvency and seriousness . For this reason, the accounts payable department must seek a balance between obtaining financing from its suppliers and punctually fulfilling its payment commitments.
Late payment, especially if repeated, can lead to:
The loss of key suppliers for the company.
A terrible image for the suppliers who have trusted it.
They may end up being transferred to lists and forums of defaulters, which can make it difficult to acquire future goods and services, thereby strangling business activity.
Companies must also expressly publish information on payment terms to their suppliers in their annual accounts report.
Learn the main functions of the accounts payable department and the software they use to optimize their operations.
Accounts payable are a form of interest-free financing for companies , so their proper management is essential for the financial balance of the company .
However, companies must comply with Law 15/2010 , of July 5, which establishes measures to combat late payments in commercial operations. This regulation college and universities email list specifies that they must not delay their payments for more than 60 days .
Download the FREE guide “The art of getting paid (on time)”
What are recurring payment and one-time payment? Post content
How to segregate administrative and accounting functions in a large company?
How to optimize the accounts payable department with technology?
Functions of the accounts payable department
Correct and timely payments are an indicator of a company's solvency and seriousness . For this reason, the accounts payable department must seek a balance between obtaining financing from its suppliers and punctually fulfilling its payment commitments.
Late payment, especially if repeated, can lead to:
The loss of key suppliers for the company.
A terrible image for the suppliers who have trusted it.
They may end up being transferred to lists and forums of defaulters, which can make it difficult to acquire future goods and services, thereby strangling business activity.
Companies must also expressly publish information on payment terms to their suppliers in their annual accounts report.