7. Build Good Vendor Relationships
Vendors aren’t just people who send you bills. They’re part of your business. Pay them on time communicate cleary and say thanks once in a while. It makes a difference. When things get tight and you need a little payment flexibility those relationships will matter.
8. Watch for Fraud (It Happens)
Yes even small businesses get hit. Fake invoices fake emails internal misuseit’s real.Double-check anything that looks off. Never approve a payment without verifying the details. If something smells fishy it probably is.

5. Don’t Pay Too Lateor Too Early
If you’re always late vendors will stop trusting you. But if you’re paying instantly for every bill you might be hurting your own cash flow. Aim to pay on timeor early if there’s a discount. Some vendors kock off 1–2% if you pay within 10 days. That adds up.
6. Use Tech (But Keep It Simple)
There’s a tool for everything these days. You don’t need a Rs10k accounting system but even something basic like QuickBooks or Xero can help a lot. Look for software that can auto-read invoices remind you of due dates and keep a clean paper trail.

3. Centralize Invoices
Invoices come from everywhereemails PDFs even printed copies dropped on your desk. Get them in one place.You don’t want to be huntng through your inbox at 9 pm wondeing Did we pay that Rs900 design invoice from last month?
4. Create approval Flow
Don’t just pay things blindly. Someone should review and approve each invoice. Maybe one person checks the math another signs off on the payment. It doesn’t need to be complicatedjust consistent. And please. don’t let the same person approve and pay. That’s just asking for trouble

1. Have Some Ground Rules
Seriouslywrite down how AP should work. Who approves bills? What’s the limit before it needs a manager’s Where do invoices get sent?
You’d be shocked how much smoother things go when there’s a basic playbook. It doesn’t need to be fancy. A simple Google Doc will do.
2. Keep Track of Everything (Yes Everything)
Every bill every invoice every due datehave it stored somewhere organized. It doesn’t matter if it’s software or a color-coded spreadsheet. Just don’t wing it. Missed bills mean late fees. Missing documents mean chaos when tax season rolls around.

What Makes a Good Accounts Payable Process?
You’d be surprised how many businesses drop the ball here. They pay late lose invoices or end up double-paying someone. Not ideal. If you want a clean functional low-stress AP setup here’s what really matters

Why This Stuff Is Crucial
Look, no one gets into business to manage invoices. But if you don’t keep an eye on your AP and AR, things can spiral fast. If you don’t collect what people owe you, you run out of cash. If you forget to pay your vendors, you burn bridges. Either way, it’s a mess.AR helps you bring in money. AP helps you avoid overspending and stay in good standing with vendors. Simple as that.

A Quick Example
Imagine you run a small coffee shop. You order beans from a local roasterthey send the beans you get the invoice and you agree to pay them in 30 days. That invoice? That’s accounts payable.
Now let’s say you cater coffee for a corporate meeting. You send the office manager a bill after the event. That’s accounts receivableyou’re waiting to get paid.

What’s the Difference?
simple version:
Accounts Payable (AP) = the money you owe to other people or companies.
Accounts Receivable (AR) = the money other people owe you
Core difference. If you’re a business and you just got invoice from your supplier for some stuff they delivered? That’s AP. You need to pay them. If you sent invoice to a customer for work you did? That’s AR.

How to Actually Do Accounts Payable Right
Let’s be honestaccounting terms can be dry. Accounts payable accounts receivableit sounds like something out of a dusty textbook. But if you run a business (or even help with the finances) these two things are non-negotiable. So let’s talk about themlike real people not robots. We’ll start with the basics then I will walk you through what makes a good accounts payable process (and how not to mess it up).