Effectively managing your accounts payable 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.
Excerpted from Start Your Own Business: The Only Start-Up Guide You'll Ever Need