Accounts Payable

7 Problems faced by companies related to their Accounts payable function:

1. Regular complain of user/purchase department about delay in payment of vendors.

2. Biased behavior towards vendors or user department while releasing payment

3. Error of judgment while deducting TDS on vendor payments resulting in interest and penalty

4. No real time status about pending bills

5. No real time tracking of bills which are yet to be posted in Accounting Software

6. Incorrect provisioning at the month end which leads to incorrect profitability

7. Cases of double payments to vendor

Benefits experienced by our clients

1. Complete objectivity while processing of payments as per agreed credit period or SLA’s.

2. Real time access to status of pending payments which leads to better understanding between user department and accounts department.

3. Full availment of applicable tax credits i.e. Input service tax or Input VAT.

4. Correct accounting as per cost/profit centers leading to correct profitability.

5. Timely preparation of Financial MIS which hugely depends on.

6. Vendor registration process and its management.

Scope of our services

1. Checking of documents received on various parameters i.e. P.O. terms, Service tax Credit etc. through a checklist

2. Correct deduction of withholding tax i.e. TDS, Work Contract Tax

3. Bill wise recording in the accounting software along with detailed narration.

4. Profit/Cost center wise recording of expenses

5. Processing of bills for payment as per agreed credit period based on complete documentation.

6. Generation of various reports i.e. Aging Schedule, Bill wise outstanding report.

7. Employ checks and balances to ensure internal control.

8. Contractual staff payment and taxation compliance there on.

9. Updation of masters relating to accounts payable.

10. Keeping track of validity of agreements.

11. Preparation of audit schedules and other desired details

Reports related to Accounts Payable

1. Ageing schedule

2. Real-time access to pending bills along with reasons

3. Master provisioning report for making and reversal of provisions

4. Bill wise outstanding report of vendors

5. Report about vendors whose agreement/contract are about to expire