To authorize and process a cash payment, it is necessary to use a fairly simple algorithm consisting of several steps, which are supposed to be performed in a certain sequence.
Cash flow statement should start by examining the financial documents received from the partners in order to gain confidence that both parties are satisfied. The main stages of payment approval include:
- sending a financial document (invoice or payment obligation);
- verification of the submitted document. This is handled by a special department that establishes the validity of the document;
- upon completion of the verification, the document is submitted for approval to the head or other representative whose duties include;
- authorization. This action is performed after it is confirmed that the financial document is legally valid.
The final stage is processing the request and making the payment.
The main advantages of making a payment schedule
It is easier for every entrepreneur to work when his activities are clearly planned, this also applies to payments. Scheduling will streamline the work and make it possible not to miss deadlines.
The main advantages of having a payment schedule include:
- the absence of missing deadlines established by law or an agreement with suppliers;
- the ability to plan expenses. You know exactly in what period of time you will need a certain amount of money to cover your planned expenses;
- has a positive effect on interaction with partners and suppliers;
- you clearly know all your financial obligations.
The payment calendar is an effective means of managing financial flows. It is impossible to catch you by surprise, since the dates on which payments are provided are always within reach.