| ody"> | | | | Your bookkeeper must handle a number of vital |
| When a small business owner purchases stock or | | | | activities to ensure that your Accounts Payable is |
| services from a provider, it is standard practice that | | | | managed professionally. |
| the vendor will give them credit. This will then develop | | | | What is a PO? |
| part of the businesses Accounts Payable. This is an | | | | To launch the process of making a purchase you are |
| advantage as you will not have to pay for any | | | | required to issue a valid purchase order to your |
| purchases and services you ask for until the credit | | | | vendor. This is the initial step in identifying the items and |
| period has lapsed. Your creditor forwards you an | | | | products that you want for your business. It will contain |
| invoice which you file until it is due for payment. | | | | itemized details of your purchase together with unit |
| Accounting for your debtors and paying your bills on | | | | costs and the total payable for the order. |
| time are the duties of an Accounts Payable function. | | | | |