You as a business owner work with professional services firms such as accountants, lawyers and others. These firms typically send an invoice and once your office receives the invoice, you or your office manager adds the invoice to a physical folder that is either yellow in color and/or labelled “Invoices – Pay Later”. Every invoice has different terms such as 30 days, 60 days or 90 days. It may be easier for you to pay all invoices at once (is it 15th of every month?) irrespective of the terms.
Let’s take a scenario:
you paid a $1000 for a 90-day term invoice on Feb 15th after you received it on Feb 1st. You still had 45 days to pay that $1000. Its like giving away money earlier than you need to. Just to prove a point, if you did not pay your invoice on the Feb 15th but invested in Gamestop stock on Feb 24th 2021 and pulled out your returns on Mar 10th (approx..16 days) your invoice would not only have paid for itself but you even made $2000. Again, I am not saying this is what you should do but used this as an example to prove a point that you do not have to pay something before you have to. And, you can only make these decisions if you have all the info at your fingertips.
That is why we at Umbrella Dental Partners built our Accounts Payable module to keep track of all invoices that were received with due dates, amount to be paid, categories of invoices, type of payment used at the time of payment and other data points that are not only captured but also generated in reports where you can make important decisions related to cash going out of your practice. To learn more about our Accounts payable feature and many other features of our platform, please let us know by getting in touch with us.