Small retailers manage accounts payable during holiday stock-up

Small retailers often face an accounts payable squeeze during the holiday season, as they must pay suppliers for inventory before holiday revenue is realized. This strain is exacerbated by larger orders, varying supplier payment terms, and earlier due dates.

To manage this cash squeeze, retailers can implement a structured process. Key steps include creating a centralized supplier record that lists contact information and payment terms, collecting necessary tax documentation like W-9 forms, and ensuring every invoice clearly states its due date.

Organizing all supplier invoices and payment records in a single location, sorted by supplier and month, helps prevent missed bills and late fees. Additionally, businesses should track vendors that may require 1099 reporting, noting that the federal reporting threshold for certain payments is set to increase from $600 to $2,000 for payments made in 2026.