Essentials of Working Capital Management: Accounts Payable & Cash Disbursements

This course continues coverage of the management of working capital – i.e., accounts payable and payment disbursing, the payment process. For this payment process to work effectively takes an efficient system. We  cover aspects of payables review and analysis to identify problem areas, such as organizing for effective disbursements handling and identifying inefficient processing practices.

Coordinated payment processing involves the coordination of the organization’s accounting and treasury functions. History of how payments were made and analysis and evaluation of alternative services, procedures, and cost-benefit of trade discounts can improve payables-disbursement processing. How payments are handled can be applied internationally as well, and specialized techniques such as pooling, netting, and reinvoicing.

Finally, an efficient payment processing system requires an efficient banking system to ensure that funds are handled safely and on a timely basis.