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AP's Impact on the Bottom Line
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As bleak economic news is leading organizations everywhere to tighten their belts, it's becoming clear in many accounts payable departments that we are now living in a "do more with less" world.
As an AP manager, you have the power to contribute to the bottom line. This issue features information outlining just some of the ways that AP can improve your organization's cash flow.
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| Patrick Harbin – Editor
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Improving Cash Flow |
AP is typically viewed in most organizations as a cost center. After all, AP's main function is to pay bills, not to generate revenue. However, there are plenty of opportunities for AP departments to help lower costs, including:
- Stretching payment terms – This allows organizations to hold onto their cash longer, but can also damage supplier relations. Talk to your suppliers first. They may be willing to work for you if they know what to expect.
- Seek invoice discounts – Paying early can actually be beneficial if the supplier offers a significant early-payment discount.
- Settling invoices with p-cards – While hard to convince some vendors to accept cards, p-card settlement is cheaper than checks and can sometimes reap substantial rebates for your organization.
These cash management techniques can help your department thrive during tough economic times. Also, check out the TAPN audioconference, Using Metrics to Show How AP Delivers Bottom-Line Benefits, featuring Judy Bicking, APM, Former Global Director, Accounts Payable European Project, Johnson & Johnson, to locate other ways your department can lower costs. Earns 1 CEU.
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Politics or Inefficient Payment Policy? |
The New Orleans Inspector General had his long-distance service canceled for non-payment. Officials blame an inefficient purchasing system, while the Inspector General blames politics. Read the story on TAPC.
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Just for Fun |
One of the greatest things about technology is that it's always changing. When discussing technology, what one says today could very well be irrelevant tomorrow.
Look no further than MSN's The 7 Worst Technology Predictions of All Time to see this in action. Did you know that we were supposed to be using nuclear powered vacuum cleaners by the 1960s?
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