How many A/P departments take advantage of discount terms?
By and large, the majority of A/P departments are taking advantage of most of the discount terms that their vendors offer. Where does your firm stand?
Right around half (47%) of all firms say they pay at least 90% of their bills within the vendors’ discount time frame. However, just 7% of companies take advantage of discounts on every invoice that comes through. That’s according to recent research from Accounts Payable 360.
Overall, larger organizations are much more likely to pay off invoices within a discount period. According to the research, only 18% of large firms (5,000 or more employees) say they pay less than 70% of their invoices within the discount period — as opposed to 44% of small firms (100 employees or less).
Smaller firms looking to prevent more discounts from falling through the cracks should look for ways to make discount invoices stand out.
One way: Stamp “discountable” invoices with a priority stamp or one that says “Discount at Stake.” This small step lets approvers know to get these invoices turned around as soon as possible.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
Because of the American Rescue Plan of 2021, more companies and gig workers will be receiving Form 1099-K, Payment Card and Third Party Net...
“It’s not right, but it is a reality. … You don’t get a lot of budget attached to (vendor setup and maintenance tra...
With all the work your A/P department puts into issuing timely payments, it can be frustrating to find out there’s unclaimed property...
Financial professionals who can read a chart are rightly worried about the long-term economic health of the U.S. To quote the late, great e...
Imagine getting a Notice of Final Determination from a state revenue department that said it wasn’t going to recognize a use tax exem...
With remote work here to stay, A/P has to work harder to verify crucial information, such as vendor bank account numbers. Unfortunately,...
