2. Prioritize and schedule payments
Everyone wants to get paid in a timely manner—from your employees to your vendors. To help make sure that happens, create a system for prioritizing and scheduling payments, then share it with your staff and vendors. This approach limits the number of check runs you do each month and helps avoid confusion or frustration for the people and organizations that are waiting for your payment. Creating an accounts payable spreadsheet, a listing of all your business purchase and vendors, and due dates, can help keep your payables process organized.
It can also prevent you from overdrawing your account with unscheduled payments that you don’t have the cash reserves to cover. In the event that you don’t have enough money coming in to cover all of your costs, you’ll have to make some difficult choices about whom to pay first. As a general rule, start with any taxes owed to the IRS (like payroll taxes), then move to necessities like payroll and utility bills.