When accounts payable is well-managed, one of the big advantages companies can benefit from is the ability to settle up invoices on time. This ensures that cash flow stays healthy, and paying vendors in a reliable manner is also an excellent way to establish a positive reputation, which can in turn open doors. On the flip side, lack of proper oversight can also result in delayed transactions.
According to a recent study by Experian, organizations in some communities have a much better handle on this aspect of their accounts payable processes than others. Researchers analyzed the average number of days it took for companies to pay their various bills, and firms paying invoices an average of only 3.2 days beyond their contracted terms. Omaha, Neb., enterprises came in second, paying within 3.54 days after the contracted terms, followed by New York City at 3.57 days.
As for the bottom five, Florida cities took four of the slots, with Fort Myers faring the worst at 18.04 days. Orlando, Miami and Fort Lauderdale were also included, in addition to Las Vegas.
Even if an organization isn't currently doing well in terms of paying bills on time, there is recourse. By using accounts payable audits, it may be possible for leaders to discover where and how things are going wrong and rectify the situation.