Nearly three quarters of all invoices globally are paid late according to a report by MarketInvoice
. And Australian businesses are topping the list of worst offenders.
MarketInvoice CEO Anil Stocker says it is a trend that crosses business sizes and industries, and no one escapes the effects, "the simple act of not getting paid when you should has an adverse effect on the success of any company."
Australian businesses delay invoice payments by an average 26.4 days late, beating out Mexico (18.6 days late), South Africa (16.5 days) and the United Arab Emirates (14.3 days) for the top spot.
Why pay on time?
Strong, stable relationships with suppliers are an important part of business success. Human error, fluctuating prices and supply shortages - to name just a few of the daily risks businesses face - can be more easily overcome by leveraging strong relationships. And while a reputation for unreliability can be problematic for medium-large enterprises, it can be devastating for smaller businesses.
Paying your invoices on time is also more likely to influence your own debtors to meet payment deadlines. Delaying invoice payments might not seem all that harmful, but remember the stress and frustration you felt while last waiting for a client to fulfil late invoice. What was the impact on your operations?
How to regain control
While the attention paid to invoices differed across countries and business sizes, MarketInvoice concluded businesses tend to pay invoices, "sporadically, often very late or very early. This would suggest an ad hoc attitude to payment, or a deliberate delay for the sake of cash flow."
Having the ability to automatically pay invoices on or before their due date, capitalise on settlement discounts and build relationships is a great advantage for businesses. Moreover, having the ability to plan effectively with an ERP solution means you can keep on top of cash flow and invoices without being caught out. Sybiz Vision's intuitive invoicing and accounting functionality helps businesses build stronger relationships through flexible automation and streamlined processing.
Find out more about how Sybiz Vision
can help you regain control of your business.