Friday Finance Fact: Maximize Vendor Discounts
Did you know early vendor payments can save you up to 2% per invoice? Don’t leave money on the table! Many vendors offer early payment discounts as an incentive for timely payments. For instance, a common discount is “2/10 Net 30,” meaning you save 2% if you pay within 10 days instead of the standard 30-day window. With QuickBooks, you can track payment terms and schedule payments to take full advantage of these discounts.
How to Track Vendor Discounts in QuickBooks:
- Go to Expenses > Vendors.
- Add or update vendor details to include payment terms (e.g., “2/10 Net 30”).
- When creating a bill, QuickBooks will display the discount available if paid early.
- Use QuickBooks’ scheduling feature to ensure payments are made on time.
By optimizing vendor payments, you can save money and strengthen relationships. Need help managing discounts and cash flow? A Chandler CPA, like AZ Easy CPA, can help you streamline your process.
Need help with your business finances? Contact Us! We offer monthly accounting and bookkeeping services, clean-up projects for past years, QuickBooks training, and phone consultations to help you stay on track.
