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This is the fifth in a series titled Ask My Accountant, where Baldwin CPAs Elevate team is breaking down your top questions. Follow the series to get answers to your key questions. If you have a question that you would like answered, leave it in a comment below!
First, you need to look at which bills are priority to be processed and which ones can wait. Utilities are at the top of the list; no lights, no operations. Utilities are best to have on autopay, so you don’t need to worry if you remembered to pay it or if somehow the statement is lost in the mail. Most utilities companies allow you to cap at how much they can draft out just in case an invoice is a bit higher than normal and you need to review. Next, we have rent; usually rent invoices are sent out 2 weeks before the due date, and you have a few days afterwards to get your payment in. Rent would be a payment I would get out as close to the first of the month as possible. Then there is insurance; this depends on your payment schedule. You want to process cost of goods and repair and maintenance invoices as needed. Typically, vendors give businesses up to 30 days to send in payment. I would look at cash flow and pay out the most outstanding invoices. It is best to keep up with these invoices and keep payments current.
It’s a lot to keep up with while managing a business. The solution to help keep you on track is to use QBO. Using QBO, you can add expenses a few days before the due date so you know where you stand on cash.
This article was written by Maxie Brown. Maxie is an Accounts Payable Senior with Baldwin CPAs. For more information on the support Baldwin CPAs can provide you, contact maxie.brown@baldwincpas.com.
