Managing your accounts payable effectively can significantly enhance your cash flow. Following are three tips for your accounts payable system that will improve your business's cash flow:
- Take discounts whenever feasible. Saving 1 or 2 percent on an order can be significant.
- If discounts aren't offered, don't pay early. There's no need to drain your cash flow unnecessarily.
- Keep your suppliers informed. If you do fall behind, keep your lines of communication open with your suppliers. You can ill afford to get put on c.o.d.