The manual draws together in one publication all matters associated with accounts payable including the best practices from both large and small school districts. I can go all day on the topic of process improvement, what can I say I have been around more than recycled glass. In some companies, it's a different world with EDI invoice submission, posting and payment processing. While each organization requires a customized accounts payable process to meet its unique needs, general best practices can provide guideline strategies: Centralize the accounts payable process with every department adhering to defined protocols and all data stored in a shared database. (Operations Accountant, New Mountain Capital), (Senior Director of Revenue Recognition., WideOrbit), (Regional Finance Director , LeasePlan Corporation N.V.), (Budget Administrator, Business Manager, Project/Program Manager, Seeking Employment), HR3408, The Taxpayer Responsibility, Accountability and Consistency Act of 2009. This control log should be going to the person responsible for the bank account reconciliation, which should be independent of the AP staff. It can add up to a nice sum by the end of the year. Scheduling team-building exercises and internal training for the proper and effective use of procurement software to request, approve, and order goods and services gets everyone involved and keeps them up-to-date on proper practices and policies. Part of the problem is that many accounting systems require a manager's signature (or those of several managers!) 7. So if you don’t already have a comprehensive procurement software solution in place, research and implement one, either as your main software or in tandem with existing Enterprise Resource Planning (ERP) software.”. We have the Resource library tab which has scores of donated resources - everything from legal docs to processes and procedures - and it's all freely available to our members. Make sure all accounts payable best practices for data management are documented, and procedures are broken down into easy-to-use checklists for storing, retrieving, and restoring backed-up data, as directed by IT. This is because when they are unpaid, it is easier to locate them by name to match to the Statement. So relying on the invoice being an original no longer offers any protection. BEST PRACTICES, Controller's Office - A/P Reduce Required Approvals 35 Book by Steven M. Bragg Check local library for book The accounts payable process is typically a long one. I have performed this review of processes and upgrade in several companies. Ensuring everyone is working with the same information will help you avoid misunderstandings, miscommunications, and expensive fees or fines. The key is to remember the audit trail. 9. It notifies you each time of due date, filters out paid and unpaid accounts payables, calculates total … If you have to pay from a copy, be sure to check your records for the same invoice number and dollar amount. But it is definitely one of the most important. Any additional documentation that needs to be submitted with the invoice. File accounts payable documents by payment date. While I concur with most of what Laresa has to say, there is one area where I disagree. This reduces the risk of errors and provides crucial context for reporting and audits. And you can print a pdf 100 times and it will look like an original each time. Identify manual AP related reporting processes, such as expense reporting, and adapt to an automated processing and workflow approval methodology. The truth is that companies ignore accounts payable best practices at their peril and the impact is felt on your bottom line. 4/4/5 Quarters in QuickBooks - How do you set fiscal months? While automation certainly simplifies invoice tracking and payment, there’s always room for process improvement. Have all invoices come to the accounting department first before being sent out for approval(s). Hopefully your A/P department can put a check beside each of these items. • Adopting more robust governance practices, which can reduce the risk of manual error and strengthen internal controls around accounts payable processing, and contract review. I hope this information is useful and serves as food for thought to the participants in this group. To remove as many finger prints as possible from bits of paper from suppliers is the most ideal approach possible, which self-billing perfectly facilitates if your suppliers can accommodate the changes in their own processes needed to make it work. on a supplier invoice before it can be paid. … This includes new procedures to verify data, both when it initially is entered and andy time it is updated. Do not enter invoices as a batch. Examine functionality of ERP reporting environment, this does not involve the financial reporting modules per se but can also include module reporting tools used to close the books. Consider the workflow of a typical invoice: Your business receives the invoice (either via paper or electronically) and sends it to the proper department; An online created sheet automates the AP process. Any AP department can find themselves easily losing a full day during the close process due to duplicate effort from limited reporting functionality. Some larger companies I've observed file by process batch#. Depending on the size of your organization, this filing structure could be adapted to a department head and those under him or her, with filing organized by roles.