For most Kenyan businesses, the accounts payable and receivable ledgers sit at the heart of cash flow management. Accounts receivable (AR) — the money customers owe you — determines when cash arrives. Accounts payable (AP) — the money you owe suppliers — determines when cash leaves. Managing both manually creates delays, errors and missed opportunities. Automating them transforms financial control.

This guide covers best practices for AP and AR management in Kenyan businesses and how BetaSuite automates both processes.

Accounts Receivable: Getting Paid Faster

Invoice Generation and Delivery

The faster an invoice reaches the customer, the sooner the payment clock starts. BetaSuite generates invoices automatically when a delivery is confirmed and sends them to the customer via email or WhatsApp — the same day, not at the end of the week when someone gets around to printing and posting them. For B2B customers who require a specific invoice format, BetaSuite's invoice templates can be customised per customer.

Automated Payment Reminders

Manual phone calls and emails to chase overdue invoices consume finance staff time and are easily forgotten. BetaSuite sends automated payment reminders at 7 days before due date (polite reminder), on the due date (payment due today) and at 7, 14 and 30 days overdue (escalating urgency). The reminders include the invoice details and M-Pesa Paybill information for immediate payment.

M-Pesa Auto-Reconciliation

When a customer pays via M-Pesa Paybill using their invoice number as the reference, BetaSuite automatically matches the payment to the invoice and posts the receipt. No manual matching. No end-of-day reconciliation exercise. The invoice status updates to paid the moment the payment is received.

Debtor Ageing Analysis

The AR ageing report shows, for every customer, how much is current (not yet due), 1–30 days overdue, 31–60 days overdue, 61–90 days overdue and 90+ days overdue. This report, run weekly by the credit controller, drives the collections conversation and helps identify customers who are becoming bad debt risks.

Accounts Payable: Paying Right, Not Just on Time

Three-Way Matching Before Payment

No supplier invoice should be paid without three-way matching against the purchase order and goods receipt note. This single control catches overbilling, duplicate invoices and payment for goods not received — which are among the most common sources of financial loss in Kenyan businesses.

Payment Terms and Due Date Management

BetaSuite tracks the due date of every supplier invoice based on the agreed payment terms. The weekly payment run shows all invoices due in the next 7 days, allowing the finance manager to plan cash flow and approve payments based on priority and available cash. Early payment discounts offered by suppliers are flagged so they can be captured when cash is available.

Supplier Statement Reconciliation

Monthly supplier statements are matched against BetaSuite's supplier ledger. Discrepancies — missing invoices, unapplied credits, disputed amounts — are identified and resolved before payment is made. This prevents paying duplicate invoices and ensures credit notes are applied correctly.

Credit Management and Bad Debt Provisioning

For invoices that become uncollectable, BetaSuite supports:

  • Credit holds — preventing new orders to overdue accounts
  • Bad debt provisioning — creating a provision for doubtful debts based on ageing profile
  • Write-off — formally writing off debts that are unrecoverable with correct accounting treatment

Book a free AP/AR demo at betasuiteapp.com/get-quote.