Days payable outstanding, referred to as DPO is an accounting term that reflects how long a company takes to pay its bills. It is calculated from figures on the financial statements. In this episode we’ll look at how to calculate days payable outstanding as well as how to increase or decrease DPO. Make sure to stick around until the end, when we explain how one tactic you might use in another area of AP, that might impact your DPO – and it might not be in line with management’s objectives for the days payable outstanding figure. #accountspayable #DPO #dayspayableoutstanding

The accounts payable process impacts the calculation of days payable outstanding. DPO is sometimes referred to as accounts payable turnover, payables turnover, payable turnover, or the payable turnover ratio. That’s why some ask what is DPO or what is days payable outstanding. In this episode days payable outstanding is explained, as is how to calculate DPO, that is how to calculate days payable outstanding.

Accounts payable and accounting require the use of both accounts payable best practices and strong account payable internal controls. For many organizations, the review of expense reports and the requests for reimbursement of expenses, is handled in accountspayable. For the accounts payable process to work well, best practices for AP should be used. By their very nature, accounts payable best practices incorporate strong internal controls and avoid AP control weaknesses.

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Host: Mary Schaeffer (www.ap-now.com)