Paying Suppliers on Time: A Weekly Payment Routine for a Small Business

Paying bills as they arrive, or as suppliers ask, is a common cause of missed dues, duplicate payments and cash shortfalls. A fixed weekly slot gives you one moment to see everything you owe, compare it with what is in the bank, and decide in order.

It also makes your cash more predictable. Suppliers learn that you pay on a set day and chase less between runs, as long as you keep the day.

1. 01

   Collect every bill in one place

   Bills arrive by email, messaging apps, post and with deliveries. Ask suppliers to send them to one address, and log each bill when it arrives with the date, supplier, amount and due date.

2. 02

   Match each bill to the order and the delivery

   Check the quantity, the rate and the delivery challan or goods received note. Do not pay a bill you cannot match to an order or a delivery.

3. 03

   Check the bill itself

   Check the supplier name, address, GSTIN where applicable, invoice number, date and tax shown. A bill with errors should go back for correction before payment. Our GST invoice checklist lists the fields.

4. 04

   Update the payable list

   Keep one list of bills not yet paid, with due dates, sorted by date. This is the list you work from on the payment day.

Compare the list with the cash you expect to have in the account, not only what is there today. Then place each bill in one of a few groups.

• ✓Tax deducted at source: check whether TDS applies to this payment, and that it is deducted and recorded before the supplier is paid. Our TDS guide for startups and MSMEs explains the questions to ask.
• ✓GST on the bill: check that the tax is shown correctly and that the supplier is registered where it should be, before you rely on input tax credit.
• ✓Bank details: confirm any new or changed account details by calling a number you already hold, not the number on the new request.
• ✓Duplicate check: search the paid list for the same supplier, invoice number and amount.
• ✓Advance payments: adjust any advance already paid, so you do not pay the full amount twice.

Requests to change a supplier's bank account carry a real risk of fraud. Treat every change as unverified until you have confirmed it independently.

In a small business, the owner often does everything. Even so, try to keep the steps apart: one person prepares the list, another approves it, and an authorised signatory releases the payment from the bank. Where there are only two people, the bookkeeper can prepare and the owner can approve and release.

1. Prepare the list with bill numbers, amounts, due dates and the group each bill is in.
2. Approve the list in writing, even a signed printout or a message that records the date.
3. Release payments from the bank, in a batch where your bank offers it, and keep the confirmation.
4. Record each payment in the books on the same day against the bill it settles.
5. Send a short payment advice to each supplier with the bill numbers paid.

The run uses the cash in order of need and leaves the dispute and the later due date for separate handling. Compare this with the collections side in our receivables guide.

The payable list is the main input for the payments line of a cash forecast. Place each bill in the week you plan to pay it, not the week it arrived. Review the list against expected receipts each week, and flag any week where payments exceed cash.

Once a month, look at the total owed, the oldest unpaid bills, and whether you are paying on time. Our guide to a 13-week cash-flow view and the monthly finance dashboard guide show how.