As the economy recovers, companies may find vendors increasingly reluctant to accept long payment terms that stretch out 45, 60, or 90 days. And when one of your oldest, most trusted vendors requests 30-day terms, it’s important to keep the peace rather than risk disruptions. Instead, organizations can save by using invoice management software to increase efficiency, prevent costly errors, and secure favorable terms from vendors.
With the 2008 recession, many large companies began paying their vendors later as a way to hold on to cash longer and shore up working capital, according to an article on the CFO Magazine website. Small vendors, afraid to lose a big customer, often accepted extended payment terms. But now companies should prepare for pushback. Some vendors may even offer better terms for prompt payments.
A comprehensive invoice management system can automate and simplify the way you handle all vendor invoices, driving down costs in several ways.
- Efficient invoice processing. Using streamlined online accounting software reduces the time and money your company spends on data entry and manually processing paper invoices.
- Preventing costly errors. An integrated invoice and expense system reduces duplicates and overpayments and provides easy access to powerful data, helping managers spot and address potential compliance concerns.
- Securing the best terms from suppliers. An efficient electronic invoicing system can help you obtain discounts from vendors for early payment and prevent late fees. For vendors that insist on paper invoices, it’s important to convert them to electronic records and eliminate front-end data entry.
Wouldn’t you rather find new ways to save money instead of trying to hold off vendors for 45, 60, or even 90 days? Instead of pushing your financial obligations further into the future, why not use technology to help?
Let us know how automated vendor invoice management has helped boost efficiency at your company by posting in the comments section below!
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Our choice of Chrome River EXPENSE was made in part due to the very user-friendly interface, easy configurability, and the clear commitment to impactful customer service – all aspects in which Chrome River was the clear winner. While Chrome River is not as large as some of the other vendors we considered, we found that to be a benefit and our due diligence showed that it could support us as well as any large players in the space, along with a personalized level of customer care.
We are excited to be able to enforce much more stringent compliance to our expense guidelines and significantly enhance our expense reporting and analytics. By automating these processes, we will be able to free up AP time formerly spent on manual administrative tasks, and enhance the role by being much more strategic.