In the beginning, accounting doesn’t seem that important. You do a service, you send a bill and the person pays. It slowly begins to creep up on you over time. You want to grow your business, so you start expanding services and generating more bills. You’ve forgot to collect on about 20 bills and now you’re backed up on past due accounts. You haven’t kept track of how many times you’ve served them, but you can dig it up in your email. Having a department or at least a person to handle your books can make your business life so much more organized. Your business needs an accounting department to manage payables and receivables, handle reporting, and maintain compliance.
Manage Payables And Receivables
Someone in the company needs to have eyes on what is coming in and what is going out. When it comes to receivables, operating costs are offset by the generated income. Billing is only a single step in that matter. There needs to be a collection of payment. If your company is waiting for checks or if payments are very outstanding, the company needs someone who can attempt to collect the money. Sometimes placing a simple phone call is enough. When it comes to company spending, you need eyes on the bills to make sure they are being paid out timely. Past due bills accumulate late fees and drive your expenses up over time. Someone also needs to watch the spending just to manage company expenses …Read more