Early payment discounts are exactly what they claim to be: a discount for paying early. In this episode take a look at the nitty gritty of how early payment discounts work, how it is written and what the financial implications are. Make sure to stick around until the end when we share some strategies for getting more discounts than you are currently receiving. #earlypaydiscount #earlypaymentdiscount #accountspayable

Early payment discounts are part of the invoice and as such should be picked up as part of the invoice processing function. Thus, it is important that everyone in accounts payable and accounting understand what early payment discounts are and how to recognize early payment discounts.

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.

Early payment discounts are a critical part of any cash management program. It is important that the entire accounts payable, accounting and treasury team understand how early pay discounts work and the financial implications of early payment discounts. Finding strategies for getting more early discounts than you are currently receiving is a good cash management approach.

Link to 3 Quick Ways to Find Cash Hidden in Accounts Payable Processeshttps://youtu.be/fnpegmMJAE0

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