December 11, 2009 
This entry was posted on Friday, December 11th, 2009 at 5:57 pm and is filed under Accounting, Accounts Payable, Tips. 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.
Increase your business performance by shaping up your accounting department. Learn to negotiate accounts payable payment terms with your creditors. Here are two sound suggestions from accounting experts:
*Negotiate your payment terms based on the receipt of goods or invoice. This can add one week or more to your terms which can be 25% of 30 day terms. Maximize your payables terms and minimize the impact to your credit by utilizing electronic funds transfer for just-in-time payments.
*Take payment discounts. For instance, if you are getting 2%/10 net 30 terms, take it. This means you will be given a 2% discount if you pay within 10 days instead of the normal 30 day terms. This would translate into an 18% return on your capital which is already a good return on your investment.