All businesses have a working relationship with their suppliers and if suppliers are not paid on time, they can charge a huge fee that can sometimes be more than the order itself. Maintaining proper cash flow begins with managing the payables. By watching your expenses and not thinking that you can make some quick sales to cover payables, you will be managing your payable correctly. Maybe your sales are dropping and your expenses keep getting higher and higher, then that is the time to get control before it is too late. Take a look at all of your expenses and this will tell you if you are in fact spending your business money properly. You can start by making a list of you accounts along with the terms of your payments.
Late fees are the worst of the worst and most companies will charge a penalty for late payments. Automatic bill paying set up online can help them from never happening. IN this way you will stay current with your vendors and maybe earn discounts over time for your timely payments. If your vendors know you well, they will most likely give you a break because they understand what it is like to run a business.
