Business Coach | Safety In Numbers With Accounts Payable
Business coach expresses the fact that Accounts Payable and the AP aging summary is very important and it can be a very good very quick tool for you to figure out all of your expenditures and all of your revenue that you have coming to you and being out to you.
It is a listing of all of the people who owe you all money to. On one column, is the amount that you will owe them currently so it is not past due at all. There are deadlines for this particular Accounts Payable AP aging summary, and this particular first column is the deadline has not been met yet.
Then we have columns for the amounts that are past due. We will have columns that are 30 days past due. Then another call and that is 30 to 60 days past due. And then another column that is 60 to 90 days past due. And then yet another column that is 90 and more days past due.
The last column is going to state the fact that it is going to have all of the amounts that are owed and that you owe. Then the final total will be at the bottom of the page.
Business coach states that usually what happens is the negative number means that you have already paid for something. This could be very easily, as it could come out of your account all the time and you don’t necessarily have thought about it. Yes, do not pay payroll or corporate tax as well, in this particular case.
You should definitely not see the CRA or the Alberta government or the specific GST only payment there within that accounts payable AP aging summary. They need to have their own particular column and their own particular accounts. They should be able to get on one balance from looking at the one account. It is just making it a lot more convoluted than it should be.
Often times what happens is the fact that the amount owing can be allocated for a reasonable amount of funds to the other bills.
Business coach also states the fact that supply suppliers will save that you are trying to pay off the bill. That is bodes well for you as you need to suppliers to obviously supply you with your goods other why you do not have a small business.
The AP aging summary is a great quick reference for you as well.
Usually, don’t think of when you have 90 days just worry about one thing at a time, oftentimes you’re going have to worry about the bigger things to begin with, and make it a very big point to pay those off first. So you might not be able to put the whole money down for those big expenditures, but at least put some money down, potentially 50% down. That will appease a lot of the lenders and you will be able to stay in good standing with them.
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Get on board when unless you’re in a lot of financial trouble which, hopefully you will not be, says business coach, you should be able to deal with the fact that you should be incrementally paying off a lot of your expenditures.
What business coach suggests is to please start paying off a lot of the bigger bills first. You don’t necessarily have to pay them all off hundred percent all at the first time, however make incremental payments so that they see that you are making a concerted effort to be able to pay those off. Secondly, make sure that you definitely know and are paying off a lot of the little itty-bitty payments as well.
As well, when you pay off all of those little payments that are 100 or $200 each, you won’t necessarily have to worry about those too terribly much and they will be out of your mind. As well, you still have to have your credit in relatively good standings. So showing that you are going to be paying someone at least a little bit of money should keep your credit not necessarily good standing, but it will show you that it is definitely trying to get back in business.
Usually when you have a negative number, you have prepaid for something as it directly comes out of your account potentially this could be, rent, mortgage, your car payment, your car insurance payment, etc. That is already been paid for, and you should not necessarily have to worry about it. It will eventually show up on your income statement.
Identify your key suppliers and get as much to them as humanly possible as stated earlier.
Unless we are in the huge financial trouble, the same thing is going to happen with the shareholders, the related parties as they are very much likes tax accounts.
Business coach states that they have to be classified separately when the financial statements are done.
It is the related parties that will have their own separate accounts on the balance sheets. The balance sheets is something that may not be understandable to you, and you’re definitely going to have to talk to your charter professional accountant so that you can have them deal with it and make sure that everything is in order and balance. Often times what happens is the provincial tax payable and a lot of the corporate tax payables are on that particular accounting sheet and it’s just making it more convoluted than at should tend to be.
Don’t make sure that it is billed to you. But you might pay it before you actually get that bill or that invoice. It will not show up on the income statement. But just be aware that you have already paid for it. A lot of times that happens in just the fact that it is a date issue. The AP aging summary is now 90 days past due and you should be starting to pay things off.