Knowledge of payment terms thwarts inaccuracies

Performing frequent manner.

Andersson added that while many firm owners believe that they know their standard payment terms, they may be mistaken. Upon closer analysis of accounts payable processes, such as comparing the Vendor Master File and invoice records, it may become clear that transactions aren’t really being made following the procedures that have been implemented.

The American Institute of CPAs emphasized that the late payments that may result from these misunderstandings can have a major impact on the bottom line. Many times, when duplicate payments are submitted to a vendor, the extra money will not be returned. This could lead to a business to coming up short when attempting to settle other invoices. Inaccuracies can ultimately damage relationships, resulting in lost time, money and reputation.

To learn more, download Tech Insight’s whitepaper, Payment Terms, Friend or Foe?

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