By and large, the majority of A/P departments are taking advantage of most of the discount terms that their vendors offer. Where does your firm stand?
Right around half (47%) of all firms say they pay at least 90% of their bills within the vendors’ discount time frame. However, just 7% of companies take advantage of discounts on every invoice that comes through. That’s according to recent research from Accounts Payable 360.
Overall, larger organizations are much more likely to pay off invoices within a discount period. According to the research, only 18% of large firms (5,000 or more employees) say they pay less than 70% of their invoices within the discount period — as opposed to 44% of small firms (100 employees or less).
Smaller firms looking to prevent more discounts from falling through the cracks should look for ways to make discount invoices stand out.
One way: Stamp “discountable” invoices with a priority stamp or one that says “Discount at Stake.” This small step lets approvers know to get these invoices turned around as soon as possible.