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How to Pay your Bills

Of course, paying your bills often depends on your cash flow. Let's focus on how you pay your bills. If your shop is small and you do not have a bookkeeper to pay your bills, you may want to keep it simple and try to pay most of your bills with a credit card. You will get a detailed list of purchases and amounts spent which can be loaded into your books. You will also earn valuable points that could lead to a vacation away from work.


As your business grows and you have someone else processing the bills and expenses, you still need to oversee the payment process to ensure that your bills are being paid on a timely basis. Know the amount of unpaid bills. If you still pay most of your bills with checks, it is important to reconcile your bank statement to your book's cash account monthly.


Another method some shops use is “Auto Pay”. You sign up with your supplier or vendor to have their monthly expenses paid automatically each month. The amount is either charged to your credit card or your checking account. This can be a convenient way to pay the utilities, car payments and insurance expenses that come every month.

It is important to keep your bills paid on a timely basis. Not only does it effect your credit score, but it also builds credibility with your suppliers. Most suppliers will take better care of the customers that pay their bills on time rather than the customers that need to be reminded about an unpaid bill or outstanding balance.

 

 

mm ABOUT CHARLEY HOWARD

Charley focuses on the financial aspects of being a florist in today’s environment, providing a basic understanding of sales numbers, cost of goods, labor and payroll costs, operating expenses, the cost of wire in and wire out orders, and other income such as delivery, relay fees, rebates, and commissions.

He arrived in sunny Florida from the frozen tundra of New England in 1991, to work at Kuhn Flowers in Jacksonville Florida as the controller. His prior background was construction and real estate. He also taught at the college level as Adjunct Staff for Post College and Southeastern Community College.