Account payable management is an important factor for every business. Studies show that, 66% of all businesses find accounts payable (AP) essential. When it comes to your security installation company, it is a must and basic element of financial processes.
Nowadays, firms are cautious of their security. With the advanced growth in technology, security has become a staple and an essential part of every large and small-scale industry. The U.S. security market size is expected to cross USD 85.11 billion by 2034. For efficient financial operation of a security business, first of all, you need to manage and maintain account payables effectively.
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What Is Account Payable?
Accounts payable are the money a business owes to its suppliers or vendors for goods and services. The products and services for the business are received, but the money is not paid to the providers. For example, you bought surveillance cameras, burglar alarms, and biometric devices for your business. You have received the items, but they have not been paid for. It can be categorized in the liability of your company’s balance sheet, which should be closed within a specific time period given by the provider.
With Zil Money, you can process accounts payable with affordable transaction fees. If your vendor does not accept the payment method you provide, don’t worry—you can pay them using their preferred payment method. You can make check payments from any bank account from the comfort of your home or the office.
If your payer needs to receive checks digitally, you can email checks instantly. Also, you can make same-day ACH, eChecks payments, printable checks by email or mail, wire transfers, or pay the vendor with your credit card. The platform offers a free online check printing service, where you can print checks on premium or regular paper using a regular printer. With just one click, you can mail checks at affordable rates to whomever you want.
Issues Faced While Handling Account Payables for Security Installation Companies:
Cash Flow Management
As the prices of security products are very high, balancing timely payments to vendors with sufficient cash flow can be hard.
Late Payments
Missing a payment deadline can seriously affect the relationship with your vendor. It can also affect future dealings and projects with the equipment providers.
Complex Agreements
You won’t be purchasing every product from a single vendor. Right? Managing multiple vendors with different payment terms and conditions can make things complicated. They require careful and timely tracking and adherence to the contracts.
Error in Manual Processing
If you are processing your accounts manually, the rate of human errors can be high—for example, duplicate payments, missed payments, or overlooked invoices.
High Volume Transaction
A security installation company may need different things and equipment than the products, like installation tools and gadgets. These things may be purchased from separate vendors, increasing the volume of the transactions. It makes tracking and recording payments very challenging.
Benefits Of Using Zil Money for Managing Account Payables
Zil Money is the best platform to enhance your financial management. You can manage all your payment-related issues through the platform.
Automated Payments
Some vendors may need payments on a specific date. Imagine your CCTV camera provider needs payment on the 5th of every month. With Zil Money, you can optimize payment processes by scheduling payments on a specific date. It reduces your need to make manual payments and helps you have a good connection with the vendors.
Customizable Payments
Zil Money offers payment methods like ACH, wire transfers, and checks, and you and your vendor can choose the payment type. You can pay the vendor with a credit card to manage the cash flow of your business. If your vendor needs the payments via ACH, but you need to pay via credit card, the platform offers to pay as you need. Also, if the vendor receives the payments by credit card, they do not have to pay the merchant fee. With the software, your transactions are simple, secure, and affordable.
Improved Cash Flow
With the all-in-one platform, you can track and know the status of outgoing payments, set up reminders, and ensure timely payments to avoid late fees. Zil Money allows you to use credit card payments and earn rewards on each transaction.
Enhanced Security
The platform offers robust security for all your payments. Features like encryption and multi-factor authentication ensure the safety of the transaction. You or your payee do not need to worry about the risk of fraud or theft. Everything is safe with Zil Money.
Integration With Accounting Software
The platform is integrated with almost every accounting software, and you can ensure the reconciliation process and financial records are updated. You can easily and instantly import the data from the accounting software to Zil Money and manage payments. If your vendor prefers check payment, you can import the data from accounting software and write the check on the go, save it, and send it directly to your payee.
Accounts Payable vs Accounts Receivable
Zil Money offers both accounts payable and account receivables to help you manage your business payments easily. In simple words, accounts payable are the money your business owes to suppliers or vendors for the goods or services they provide. Account receivables refer to the money owed to your business by your customers for the services and goods that you provide. Maintaining accounts receivable and payables is very important to sustain a business.
The number of AP teams that are fully automated has nearly doubled in the last two years, with 9% fully automated compared with 5% a year ago. The study clearly indicates that businesses are looking for an enhanced and effective accounts payable management system.
Zil Money allows B2Bs and individuals to manage account payables and receivables easily without the help of others. Utilizing the platform’s features will help you reduce errors, handle multiple vendors with ease, and make sure your company stays on top of its financial obligations.
