Paying your bills on time is an important responsibility as a business owner, as not only can it build your credit rating with others, it may also help you avoid costs (such as late penalties and interest fees on loans). However, like most things in business, paying your bills on time is easier said than done.
To help you become the best business owner you can be, we’ve compiled a list of tips on how you can keep track of your business bills and pay them on time. This way, you’re sure to find success as a reliable business owner, and make more friendly connections with those around you!
Develop a Financial Plan
According to Money Smart, a financial plan or budget will help you keep track of your bill payments, and how much they will affect your overall business profits and transactions. You should make sure your finance plan is able to guide you through your spending and your business bills, however also adaptable to any possible changes that may come your way.
For example, dividing your business revenues into certain percentages for spending on financial goals (e.g. 50% for bills and expenses, 30% for business growth ventures, 20% for product development). This will help make sure that your business bills are planned for and paid on time and in the right amount as well.
Use Corporate Cards
One common struggle when it comes to paying and keeping track of your business bills is not knowing how to pay them. Nowadays, there are many ways to make payments both in-person and online, from third-party payment services to virtual credit cards, to straight cash. However, when it comes to paying bills for your business, one of the most effective methods is to use virtual corporate cards.
Virtual corporate cards can be helpful for paying your business bills as they can conveniently pay for almost anything, while also acting as a hub for transaction records. They are especially useful for businesses with multiple employees who are often making bill payments for the company. Virtual corporate cards can be issued, paused or cancelled instantly and can help you avoid troubles of time consuming paperwork or frequent bank visits.
Automate Your Bill Payments
Another way to help you keep track of your bills is to completely automate your bill payment system. Automatic bill payment programs such as those at DiviPay help you extract, code, approve and pay bills all from one virtual place.
They will make automated batch payments for you, invoice forwarding email addresses, perform OCR invoice extraction as well as report financial transactions and insights in real time. Most automated bill payment programs are also integrated with powerful accounting tools.
Keeping Track of Your Business Bills
There are many ways to help you keep track of your bills. Keeping track of your bills is extremely important, especially if you want your business to succeed with accurate and effective financial management. Be sure to take our tips and steps above to help you keep track of your business bills.
