Working capital management: driving additional value within AP; Treasurers typically face the dilemma of trying to balance early payment discounts with maximizing float from short-term cash. Adding a purchasing card settlement capability within an EIPP program can be a major help.(CASH MANAGEMENT)(Accounts payable)

Financial Executive, October, 2007 by Bauer, Dennis

Regardless of the economic climate, companies are always seeking new and innovative ways to reduce costs and increase revenues. One approach attracting attention from leading financial executives lately involves maximizing working capital--or extracting more value from short-term cash.

Accounts payable (AP) and procurement professionals often help their organizations realize working capital opportunities by streamlining processes for paying suppliers and securing the best supplier discounts and terms. Treasury professionals typically manage working capital through days payable outstanding (DPO) and by optimizing the use of cash.

Reaching these goals on a consistent basis, however, can be a daunting task as companies are forced to strike a balance...

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