One wasteful place where money flows out the door in small businesses is in late fees. Invoices get paid late when they are out of sight. Having an accounts payable process in place that includes visual cues can reduce, even eliminate paying fees, fines and penalties associated with missed or past due invoices.

1. Accounts Payable Process – Vendors & Creditors
start
Receive incoming bills/
invoices via postal mail,
fax or email.
Open accounting log or
software to enter the
type of bill.
Credit Card
Statement
Loan Coupon
Invoice for
Services
Rendered
Enter vendor
name, date
received, date
due, amount due
& applicable
interest.
Verify principal
owed and total
interest paid.
Separate expenses
by line item.
Enter vendor
name, date
received, date
due & amount
due.
Enter vendor
name, date
received, date
due & amount
due.
Is the Amount Due correct?
YES NO
Determine date
to pay
Invoice/Bill.
Call
Vendor/Debtor
to resolve
discrepancy.
How will
payment
be made?
Credit Card
Check
Automatic
Withdrawal /
Online Bill Pay
File paper or electronic
bill/invoice stubs.
Record payment and
date in Accounting Log or
software.
Pay bills on designated
day(s). Check for
correct post date for
automatic withdrawals.
end
See Records
Management
Process
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