Another use for online discount calculators
Plenty of A/P departments use some type of an online discount calculator to see it’s worth taking suppliers’ prompt-pay discounts. Well, here’s how your Finance department can get even more from that tool.
Get your Accounts Receivable to take some of the more popular prompt-pay discounts your firm is offering and run them through whatever calculator your A/P department uses. This is a quick and painless way to see if getting the cash more quickly is worth the price cut you’re firm is offering customers.
It’s best to focus on customers who always take your early-pay discount first, then eventually run all of your discounts through the calculator.
Whether you’re interested in using an online discount calculator in A/P, A/R or both, here is a great (and free) tool to check out — courtesy of the U.S. Treasury’s Financial Management Service.
- Share on
Free Training & Resources
White Papers
Provided by UJET
White Papers
Provided by Anaplan
Further Reading
Companies are likely to see more customers stretch payments in 2024. Don’t be surprised if a steady client ghosts you either. Reas...
Among all the important tasks CFOs and collectors juggle every day is trying to reconcile accounts due. There may be more pressure this yea...
Collections teams are under added pressure to keep after delinquent accounts and press for payments, even if only partial ones. Waiting too...
If your Accounts Receivable (A/R) process still includes manual steps, you’re not the only one. Not by far. Recent A/R benchmarks hig...
The Department of Government Efficiency (DOGE) got its start on Day One of President Donald Trump’s second term and met with immediat...
Back in 2013, the Securities & Exchange Commission (SEC) accused hedge fund manager George Jarkesy of defrauding two investors. Unlike ...
