Arnon Dror is one of the popular names in the world of international business and finance. This Masters graduate in business administration has over 20 years of valuable experience. He has been successful in discharging the post of Vice-President in more than one company. These organizations are Scitex, Presstek Inc., Creo Inc., Kodak, Creo Americas, and Xerox. The officials of such establishments say he’s responsible for converting their concerns into profit-generating units. This is a feat which many of his contemporaries haven’t been able to achieve. These managers even acknowledge that Arnon Dror is a specialist in the area of internal reconstruction. They even admit his expertise extends to many diverse areas. These include corporate mergers, cash flow management, internal control, international taxation, ERP integration, and financial planning.
Arnon Dror – How can entrepreneurs streamline their business’ accounts payable process?
This financial expert says most entrepreneurs don’t pay adequate attention to accounts payable management. Issues relating to marketing, production, sales, customer service, and inventory take much of their time. These businessmen give a second thought on how they’re going to pay their vendors’ dues. As long as they clear such payments within a reasonable time, it doesn’t occupy their minds. However, this professional explains these proprietors should take the necessary step to streamline their accounts payables. Otherwise, their organizations could end up facing severe cashflow problems. This can affect their commercial activities in the market. Time may even come when they don’t have money to exploit new opportunities. This is not the kind of situation they want to face.
He suggests the entrepreneurs should consider the following 2 important tips to streamline their concern’s accounts payable:
- Make accounts payable a management responsibility
The proprietors should appoint one of their top managers to scrutinize their all vendors’ invoices. They need to ensure such documents are authentic in every respect. If they find any kind of discrepancies, the staff member should contact relevant suppliers immediately. Their objective is to sort out such matters within the shortest possible time. Moreover, these employees should prioritize the payment of these bills according to their urgency. This ensures their owners can clear such dues instantly without any hassle. This goes a long way in improving the relationship these entrepreneurs maintain with their trading partners. This is a fact which they can’t afford to overlook.
- Automate the entire process
Entrepreneurs are aware of an important fact. Their inability to pay their vendors’ bills on time not only affects their cash flow position. It also gives their businesses a bad reputation in the market. The suppliers may refuse to conduct any form of commercial relations with them. This can hamper its market operations. It is something they want to avoid at all costs. This is why these businessmen should automate their entire payment approval mechanism for purchases they make. They should negotiate with their trading partners on adopting a software platform suitable for both parties. In doing so, they should take adequate steps to avoid the occurrence of potential frauds. This ensures they don’t lose money.
Arnon Dror says taking steps to streamline account payable is a necessity for entrepreneurs. It goes along in improving their business’ cash flow position and image in the market. Implementing the above 2 important tips helps them to achieve this objective. It’s a decision they won’t regret making in the long-run.