- Your
creditors’ age analysis report will list each supplier’s invoices and
payments in a separate account. Always make sure you can find the invoice
from the information recorded on the supplier’s page.
- Agree
the report total to the customer control account in the balance sheet
section of the trial balance.
- Agree
the individual supplier balances to the statements received from the
supplier and make a note the reasons for any differences on the supplier
statement (for example if you have paid an amount which does not appear on
the supplier statement yet or a credit note that you still need to
record).
- Some
reports include a ‘supplier turnover’ total. By comparing month on month and year on year, suppliers with
increasing activity can be identified.
If your business provides significant support to the total turnover
of one of your suppliers, you should be able to arrange favourable
repayment terms with your supplier to boost your own cash position.
5. Use your supplier summary to make sure you
pay on time and secure your credit for the future.
- Boost
your cash position by making full use of all interest free credit periods
(for example 30 days before you have to pay your accounts).
- Scan
through the money owed totals and ensure they seem reasonable.
- Compare
to other documents such as statements and letters from suppliers.
- Look
for duplicated invoices.
- Agree
the total money owed to the supplier control account in the trial balance