Here are some tips and best practices for paying bills on time, avoiding penalties and keeping vendors happy!
Property management companies don’t have the greatest reputation when it comes to paying bills on time.
It’s a key responsibility of any property accountant, however this can be a daunting task, particularly if you are managing multiple properties with different vendors and payment schedules. With these challenges, it’s no wonder where this reputation comes from!
However, with some careful planning and a few simple strategies, you can streamline your payment processes, avoid late fees and penalties and importantly, keep your vendors happy!
Here are some tips to help you make sure bills get paid on time:
- Create a payment schedule: Start by creating a payment schedule that outlines when each bill is due and how much it costs. This will help you stay on top of your payment obligations and avoid any surprises. Be sure to include recurring expenses such as rent, utilities, and maintenance fees.
- Use an automated payment system: Consider setting up an automated payment system for recurring bills. Our CondoWorks sales team is always happy to chat!
- Prioritize your payments: When you have multiple bills due at the same time, it's important to prioritize your payments. Start with bills that have the highest priority, such as utility or mortgage payments, and work your way down the list.
- Set up payment reminders: Use a calendar or scheduling software to set up payment reminders. This will ensure that you don't miss any important payment deadlines. You can also use automated reminders that are sent to your email or phone.
- Monitor your cash flow: Keep track of your cash flow and ensure that you have enough funds available to cover your payment obligations. If you anticipate any cash flow problems, prioritize your payments accordingly and communicate with your vendors to arrange payment plans.
- Negotiate payment terms: Consider negotiating payment terms with your vendors. For example, you may be able to negotiate longer payment terms or early payment discounts. This can help you manage your cash flow and save money in the long run.
- Keep accurate records: Finally, make sure you keep accurate records of all your payments. This will help you stay organized and avoid any disputes with your vendors. Consider using accounting software to track your payments and generate reports, our team at CondoWorks is always happy to chat about record keeping and reporting capabilities.
In conclusion, managing payments can be challenging, but with some careful planning and organization, you can ensure that bills are paid on time and avoid any unnecessary fees or penalties. By creating a payment schedule, using an automated payment system, prioritizing your payments, setting up reminders, monitoring your cash flow, negotiating payment terms, and keeping accurate records, you can streamline your payment processes and focus on growing your business.