Accounts Payable

Accounts Payable Services in NYC

Accounts Payable Services in NYC

Accounts Payable Service in NYC and the Surrounding Areas

We know how important it is to establish good relationships with your vendors. Your business is tied directly to your vendors, and without them it would be difficult to sustain your business. It is typically a relationship built on trust and mutual benefit. We realize in order to maintain the relationship established with your vendors, you expect timely receipt of products purchased (especially when your purchases are inventory related) and your vendors expect timely payment from you.  

We can eliminate the effort you must put into sustaining vendor relationships by submitting purchase orders based on sales forecasts and inventory levels, and we'll prepare payment for all invoices received.

Competitive bidding is an additional accounts payable service we provide to clients who are interested.  Competitive bidding is used to select a vendor for a service your company may need and is a great way to guarantee your company receives the best deal; high quality for the lowest fee. The process is described in more detail below. Our accounts payable related services include:
  •     Competitive Bidding
  •     Purchase Order creation
  •     Vendor payment
  •     Report generation and ratio analysis
Competitive Bidding

If your company requires a good or service that it doesn't typically need and you'd like to determine which vendor would offer you the best quality for the lowest price then you may consider competitive bidding.  
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Accounts Payable Service in NYC and the Surrounding Areas
A competitive bid form is sent to vendors, typically three vendors are selected but if desired, the form can be sent to additional vendors. The vendors fill out the competitive bid form providing detail about the services they can provide to you and break out the associated costs. The forms are sent back to your office and evaluated against one another to determine which vendor is offering the highest quality services at the lowest price and best value.

Once a vendor is selected, a justification for the vendor selection process is documented on the competitive bid form. The justification explains why the employee selected the vendor over the others.
Competitive bidding is intended to ensure impartiality in buying decisions. We can create competitive bid templates and assist you in formalizing a competitive bidding process.

Purchase Order Creation

We can create purchase orders for goods and services ordered and enter the purchase orders into the system for easy tracking.  Typically, purchase orders go through an approval process which confirms the purchase is authorized by appropriate individuals.  Purchase order approval is a simple way to gain oversight over what is being purchased for your company.  This is a good control if there are multiple employees authorized to make purchases in your company.

Vendor Payment

We'll enter vendor invoices into our system and match bills to the corresponding purchase order which allows for easy tracking of outstanding purchase orders.  Additionally, matching purchase orders to the corresponding invoice provides confirmation the bill is for an authorized purchase prior to issuing payment.  

We'll process payments and prepare the checks in the system which can then be emailed PDF or printed and delivered to your office where the appropriate individual will sign the checks as final authorization of payment.  All checks will be sent by your company, we simply do all the prep work to make processing vendor payments as efficient as possible.  

Report Generation and Ratio Analysis
 
We will provide periodic reports highlighting vendor spend and also provide summary of payments made during the period.  Good reports increases the transparency you have into your company's position and increased transparency provides more information which helps you make better business decisions.  

Monitoring your payables and tracking outstanding invoices makes it easier for you to pay vendors on time. When payment is received timely, vendors are more likely to extend more favorable credit terms to your company.  In the end the relationship grows in a positive direction.  We'll provide the following reports on a monthly basis:
  • A summary of dollars spent by vendor
  • A summary of each vendor's account balance
  • An Aging report which will highlight any past due balances
  • Ad-hoc reports on a client by client basis.
In addition, we can perform ratio analysis which provides another method of monitoring your company's payable process.  See below for a brief description of the two most commonly used payable ratios:
  • Accounts payable turnover ratio determines how many times your company repays it's payables to creditors during the year.
  • Days payable ratio shows how many days on average it takes your company to pay its accounts payable.  
Ratio analysis can be compared to industry standards and is a quick way to determine if your collection policies are working effectively or not.  

Contact AKS Bookkeeping Services

Please contact us today for a free consultation and learn how we can help you manage your business with our accounts payable service.
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