March 29, 2010 
This entry was posted on Monday, March 29th, 2010 at 5:39 pm and is filed under Accounting, Accounts Payable, How To. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
When in business, it is sometimes necessary to extend credit. The amount of credit and payment terms will depend on your cash flow. If you extend yourself too much you and your company will get into trouble. That’s why I have an accountant on board my organization. He will determine accounts payable payment terms.
Accounts payable payment terms can be short as 7 days credit to as long as 60 days. Some companies even extend credit for up to 4 months. You don’t want to extend long credit as much as possible. It might affect your cash flow. Study your expense sheet. Compute your overhead. From there you will get