Tips for Paying Vendors and Other Invoices

   

31 Slot bill/letter organizer image by amazon

It's important to pay all your vendors and other invoices on time when you're running a restaurant for more reasons than you might think. If you're just getting started in business, you need help creating a system of bill paying that works. If you've been in business for a while and are running into trouble paying bills, you need to get back on track before it's too late.  We'll list some of the benefits of paying on time and help you with tips to stay on top of all those bills that keep coming in on a weekly or monthly basis.


Pay on time - it really helps you and your business and here are some of the benefits you'll get in return.

     * Trust with your vendors - this could be one of the most important benefits of making sure to pay each of your vendors on time. The more trust you can build as you're running your business the better.

     * Vendors that trust you to make your payments will extend more credit to you and we all know that there are plenty of occasions when that will be imperative.

     * Eliminates late fees which is simply wasted money that could be spent on other things for your business. 

     * Boost your credit rating so that if you need a bank loan you'll be much more likely to get the assistance that will help your business stay in business.

     * Avoid bad press - bad news always seems to travel a lot faster than the good news, especially in business and paying all your accounts timely will reduce the chances of having any of your creditors talk bad about you in the community.

Tips to Stay on Top of your Bills and Invoices:

     * Get yourself a calendar to mark each day that a bill is due and keep it super handy in your office. We like the desk top calendars that show a month at a glance. When a bill arrives, open it and mark down the due date on your calendar.

     * Keep a file folder on your desk to keep all the bills in quick sight. A 31 day bill organizer sits on the desktop and allows you to keep each bill in the slot so you won't lose track of it and forget to pay. Each day of the month is marked so you simply keep the paper portion in the slot. Even if you have an office clerk for your business, it's up to you as the owner or manager to make sure that you have a simple system in place that helps to pay bills on time and reduces the likelihood of missed payments.

     * If you've got bills that are on auto pay and get deducted from your checking account each month, write yourself an invoice for it anyway and keep it in the slot for when the deduction happens. That way, you won't forget to deduct it from the checkbook and this reduces the chances of an overdraft.

     * Write checks for your vendors and pay them when your next food or beverage delivery arrives. This not only helps you to pay on time but, vendors love getting paid when a delivery is made - even for prior deliveries. This also helps you to reduce the amount of stamps you need for bill paying and that saves more money too.

     * Keep track of quarterly taxes just like you would your monthly bills. It's better to set aside some funds for when these taxes come due than to need it all at once. Use your monthly at a glance calendar to help you recognize what you'll need in the coming months. 

Monthly at a glance calendar by amazon

     * Contact your creditors and ask for a change in terms to your contract that include reduction of interest rates and changes the due date for bills that works better for you. Why keep fighting the fact that a certain bill is due and each month you tend to be late due to payroll date or because you're waiting for credit card deposits to your business. Most of your creditors will be happy to change a due date that is more beneficial for you especially if it means that you'll be more timely with your payments. Try it for all your bills from food and beverage to car loan or business loan. 

     * Reduce unnecessary services that you could be doing yourself such as linen service, carpet cleaning (it's cheaper in the long run to own your own machine and you can use it whenever you want) , rug service (buy your own rugs and stop renting them), knife sharpening service (your professional chef can do this task) and any other services that can keep more money in your pocket for those other expenses that can be paid on time.

     * Use a payroll company that will deduct your bi-weekly payroll taxes on your payday and not a day earlier. You can't afford to have these taxes paid early when on time is good enough. Keep those funds in your account until the due date. Sometimes, this means finding a local, smaller payroll company to work with. 

We hope you'll understand the benefits of paying bills on time and use the tips here. It's worth it to make sure that all your restaurant expenses be paid on time or you'll find yourself working with vendors that don't return your calls immediately and won't give you the best deals along with overpaying for late fees. Which of these tips will you try first?

Cheers to your financial health in business and keep reading Show me the $$ - Making Money in your Restaurant for more ideas.