[Webinar] AP Function: Does Yours Have a Strong Foundation?

The Accounts Payable Function:
Does Yours Have a Solid Foundation?
Mary S. Schaeffer
Accounts Payable Now &
Tomorrow

Agenda
O Introduction
O The 25 questions
O Closing comments
(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 2

Introduction

A Solid Foundation
O Basis for everything else
O Problems creep in elsewhere
O Inefficiencies
O Fraud and duplicate payments
O Regulatory issues

The Accounts Payable
Foundation
OBasics
OStrong Internal Controls
OCurrent Best Practices
ORegulatory Issues
OEfficiency

The Checklist
O List of 25 questions
focusing on the foundation
issues
OSeparate document for you
to use later

The 25 Foundation
Questions

Question #1: Does Your Staff
Understand the Basics?
ODocuments
OThree-way match
OHandling of both PO and
non-PO invoices

Invoices: Types
O PO invoices
O Non-PO
O Check request
O Expense
reimbursement
Invoice Types
PO
Non-Po

Question #2: Has there been adequate
training provided for the staff?
ONew hires
O Until they are comfortable
ONew procedures
OPolicy and procedures
manual

Question #3: Has there been re-training
to brush up and make sure every one is
on the same page for existing processes?
O Standardization
O No creativity
O Rigid coding standards
O Duplicate invoices weeded out and not
paid

Question #4: Has there been
training for any new processes
or changes you have made?
O Not just “here’s the new process”
O Make sure everyone understands
O Official start date – after training
O Expect a lot of changes in coming
months/years as technology makes
inroads
O Changing best practices(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 12

Question #5: Do you periodically sit &
watch the processors handle invoices to
make sure they are doing it correctly?
O The way others are doing it
O No shortcuts
O What’s in the manual

Question #6: Have appropriate internal
controls been fully addressed within the
department?
O Weak controls = more opportunities for mistakes and
fraud
O Employees typically know where weaknesses are
O Sarbanes-Oxley
O Usually equate to best practices
O Not necessarily the fastest way

Question #7: Do you have no more than
one person handling each leg of the P2P
process?
O Segregation of duties: appropriate
O Includes the purchasing leg
O Means collusion is necessary
O Makes internal fraud harder to commit

Question #8: Does your segregation of
duties workflow include the necessary
provisions for backup when someone
is out of the office?
O Often over-looked
O Makes segregation of duties more difficult
O No sharing of passwords
O Bigger issue in coming years as AP
departments get smaller

Question #9: Have you checked to
make sure old accesses to your system
were turned off in cases of promotions
or terminations?
O Often forgotten
O Run a report
O Make this part of standard procedures
O Terminations too!!!!

Question #10: Does your staff
understand the importance of
not sharing passwords?
O Negates segregation of duties issues
O No audit trail
O A firing offense in some companies

Question #11: Do you have a policy and
procedures manual for your accounts
payable function?
O Documents what’s done
O Key to a standardized process
O Can be used as a training manual
O Reference guide
O Critical for tasks not performed regularly

Question #12: Does your policy and
procedures manual accurately reflect
the work being done in the department?
O Usefulness
O Effectiveness
O Can it be used for training
O Not just given to someone
O Can it be used as a reference guide

Question #13: Is your policy and
procedures manual updated every
time a change is made to your process?
O If not, not as useful as it could be
O Questionable training/reference tool
O Doesn’t have to be printed
O Mainly a PDF

Question #14: If there have been no
changes to your process in a year, do you
review the manual at least annually?
O Without realizing it, outdated
O Changes not reflected
O Five year old manual probably needs a
massive overhaul
O E-mailed invoices
O Cloud technology
O BYOD

Question #15: From time to time, do
you evaluate (either formally or
informally) new information related to
the AP procedures to see if it would
enhance your operations?
O Vendors changing the way they do
business
O New processes
O Regulatory pressures

Question #16: Do you periodically
evaluate (either formally or informally)
new information related to technology
affecting the AP function to see if it
would enhance your operations?
O Lots of technology enhancements
O Costs coming down
O Would invoice automation be within the
reach of your organization now?

Question #17: When evaluating the
integration of a new practice, do you
analyze not only how it would affect your
AP operation, but also other depts.?
O Accounts payable not an island
O Part of a bigger enterprise
O Don’t want to create problems elsewhere

Question #18: Does your process include
steps that will enable you to meet all
regulatory issues accurately and timely?
O May add time to the process
O Information Reporting
O TIN Matching
O Sales and Use Tax
O Accruing Use Tax
O Unclaimed Property
O Keeping careful track of escheatable items

Question #19: Do you keep up-
to-date on all regulatory issues
affecting accounts payable?
O Frequent changes
O Especially 1099s
O Feds checking and more persistent
O New report on worker classification

Question #20: Do you keep your eyes
open for new regulatory issues the AP
team needs to understand?
O Pharmaceutical companies
O Sunshine Act
O New issues
O OFAC
O FCPA

Question #21: Do you continually look
for ways to make your accounts
payable process more efficient?
O Continued pressure
O Do more with less
O New regulatory compliances
O Process improvements
O Technology can help

Question #22: Do you regularly ask
processors for process improvement
suggestions & evaluate them to see if
they are effective for the entire staff?
O Closest to the process
O Good suggestions
O Manager’s role: Make sure they don’t
create a problem elsewhere

Question #23: Do you keep your eyes
open for new technology that might
help your organization’s AP process?
O Only get so far with process
improvements
O Critical to keep up with technology
O New advances every year

Question #24: Do you know what
new technology your competitors
and peers are using?
O Hard to know where to start
O Piggy back on others’ successes
O Making the case to management
O Ask
O Chapter meetings
O Vendors
O LinkedIn

Question #25: Do you attend vendor’s
webinars, watch online demos to learn
what features are available and might
enhance your own operations?
O Finding information easier than ever
O Visit websites
O Watch online videos
O Ask for an online demo

Concluding Thoughts

Conclusion
O Strong foundation is critical
O What you build today won’t last forever
O Periodic tweaks necessary
O And don’t forget technology
O It will play a huge role in the AP
department of the future
O For organizations of ALL sizes

Question #26: Have you requested a
product demo from Anybill yet?
OWhat are you waiting for?
OCall 877 426 9245
OE-mail info@anybill.com

Questions/Comments
Share your thoughts and insights with
Mary Schaeffer by writing her at
marys@ap-now.com
 Sign up for her free weekly ezine at
www.ap-now.com/ezinesignup.html

About Mary Schaeffer
Editorial Director & Publisher
CRYSTALLUS, Inc. publisher Accounts Payable Now & Tomorrow
newsletter
• Creator of Institute of Financial Operations Accounts Payable
Innovation Certificate program
• Editor-at-Large CFO Publishing’s Learning Pro: AP Edition
• Nationally recognized accounts payable expert and consultant
• Frequent speaker at seminars, conferences and online events
• Regular contributor to the AICPA’s Corporate Finance Insider
• Writes a free weekly e-zine, e-AP News
• Author 17 business books including the just-published 101 Best
Practices for Accounts Payable
• M.B.A. Finance, NYU
• B.S. Math, York College

[Webinar] AP Function: Does Yours Have a Strong Foundation?

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