Segregation of Duties: Why your A/P person should not be responsible for A/R.
To accurately keep tabs on your company’s performance metrics, you may want to segregate your accounting duties to minimize conflicts of interest. You should assign the accounts payable (A/P) and accounts receivable (A/R) jobs to separate individuals in Missouri to ensure your financial metrics remain complete and accurate. If you assign both of these task to a single person, you may find it difficult to control your accounts and quickly resolve discrepancies. Read on to learn the main reasons why your A/P professional should not handle your A/R tasks.
You can employ separate A/P and A/R professionals to keep your accounts balanced for improved cash flow through your company. Your accounts receivable professional will issue invoices, collect payments and make collection calls. The accounts will generate cash flow through your company as your A/R professional settles the balances owed.
Your accounts payable professional, on the other hand, will utilize the cash flow to satisfy your debts by issuing timely payments. The A/P tasks may include making payments to lenders, suppliers and utility companies to ensure the smooth operation of your company. With two accounting professionals at the helm, your accounts will remain balanced to prevent issues with late payments on either side of the equation.
When you have two individuals handling your small business accounting tasks, discrepancies are often immediately identified and resolved. With two accounting professionals, you always receive highly accurate metrics due to the use of double checks on either side. You also mitigate the risk of loss due to the misallocation of funds.
With a close eye on either side of these operations, you can rest assured your financial metrics provide an accurate and honest representation of the success of your company operations. As a result, you can safely utilize the financial information to make important changes to your business operations without worry about the impact of potential discrepancies in your totals.
Assigning Separate Duties
You can ensure your accounting metrics remain up to par by assigning the tasks to the professionals at accountRely in St. Louis, MO. Your accounting professionals will handle all of the calculations and tasks required for your accounts payable and accounts receivable operations. You will always have a clear outlook on your assets and liabilities with these professionals working on your side.