No matter how profitable a company is, managing finances effectively should always be a top priority. When it comes to optimizing accounts payable processes, enterprises shouldn’t just be harnessing that this is equivalent to a 36 percent rate of return. While losing $200 on a $10,000 invoice by not getting the invoice turned around in 10 days doesn’t not immediately seem impactful, the losses will snowball over time as more invoices are processed.
However, losing discounts isn’t simply a matter of companies opting not to use these opportunities. Karl Andersson, CEO of Tech Insight, noted that mismanagement in accounts payable can lead to businesses having a poor understanding of payment terms, and this often means that discounts are not being leveraged. By understanding what discounts are offered and meeting the requirements to receive them, Andersson asserted that enterprises are likely to achieve significant savings. But when payment terms are misunderstood, important opportunities are missed.
To learn more, download Tech Insight’s whitepaper, Payment Terms, Friend or Foe?