Do you think that companies should maximize their payment power by only paying bills when they are due rather than early so they can use the cash flow on something else?© BrainMass Inc. brainmass.com June 3, 2020, 10:29 pm ad1c9bdddf
Absolutely, a company should pay bills when they are due and not much earlier, unless a discount is involved. Good cash management policies would dictate this procedure.
Here's an example: let's say you are the CFO for a small manufacturing company. In a normal month, your company pays vendor invoices of about $100,000. Your accounting system ...
In a 239-word solution, the response explains how good cash management policies should work. There are practical examples included for better understanding of why cash management policies are important.