Accounts payable

Accounts payable and the cyclical business

Many businesses have a significant amount of cyclicality. As an example, most retail businesses see a hockey stick increase in sales in the fourth quarter. This cyclicality puts special stress on the finances of the business. Most businesses can get good terms if they pay promptly. However, the purchases can be significant at the end of year. This requires special planning for accounts payable. Oxford Management does a diagnostic that helps businesses forecast their cash needs during the cyclical portion of the year. This has helped businesses develop good credit ratings and meet their expenses comfortably.