Process for accounts payable
-
Key Focus: Setting up Direct Deposit from Gusto
Action Step: Adjust vehicle expense payments and integrate them into the payment schedule. It is essential to establish direct deposit from Gusto for a more streamlined payment process.
After processing Payroll & Rent on the 1st of each month, any remaining funds are designated to our Accounts Payable (AP) as follows:
Average Payroll Cost ($X per payroll) :: (payment due on Y day)
For instance, ensure $50k is available in the bank by April 15th to cover upcoming expenses.
Invoices Due within:
1 - 30 Days
🟢 No Immediate Action Needed, No Payment Required
Log the Bill in Quickbooks for precise tracking of upcoming payments and expenses.
30-60 Days:
🔴 Urgent Priority: CDOT/Tickets, Customer Refunds
Timely attention is crucial for these payments to prevent delays or penalties.
🟡 Moderate Priority: Collections/Lawyers, Key Suppliers, Subcontractors
Allocate resources promptly for handling these payments to uphold good relationships with vendors and partners.
🟢 Minimal Priority: All Other Expenses
Although important, these expenses can be managed effectively within the specified timeframe.
60-120 Days:
🔴 Urgent Priority: CDOT/Tickets, Customer Refunds
Continue to monitor these payments closely to avoid any complications.
🟡 Moderate Priority: Collections/Lawyers, Key Suppliers, Subcontractors, All Other Expenses
Maintain a balanced approach in addressing these payments efficiently and prioritize based on urgency and significance.
120+ Days:
🔴 Urgent Priority: Addressing All Outstanding Payments
Resolve any outstanding payments promptly to prevent any financial implications or disruptions in operations.