Not too long ago we discussed how to avoid a late payment and how AP Automation can manage the entire payment process quickly and accurately, thereby avoiding past due accounts. And as beneficial as avoiding a late payment may be, taking advantage of early payments may prove to be the next step in good business decisions.
According to Scott Pezza on CFO.com, if, in fewer than 10 days, your business can get an invoice to accounts payable, confirm the bill’s accuracy, obtain approval, and initiate payment then it may be worthwhile to pay in full ahead of time for an early payment discount.
In his article, Delaying Supplier Payments Isn’t Always Smart, he makes the case that “if you can process the invoice quickly, it may be better to take advantage of early-payment discounts.”
The question then becomes, can your business achieve those steps in less than 10 days?
World-class AP departments use AP automation to better manage cash flow, negotiate better vendor contracts, and achieve more efficient workflows that allow for not merely avoiding a late payment, but taking advantage of benefits such as early payment discounts.
Learn more in the DocStar Executive Brief, How CFOs Build World-Class AP Departments with AP Automation.