The Accounts Payable Function: Does Yours Have a

Solid Foundation?

Mary S. SchaefferAccounts Payable Now &

Tomorrow

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AgendaO Introduction

O The 25 questions

O Closing comments

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Introduction

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A Solid Foundation

OBasis for everything elseOProblems creep in

elsewhereOInefficienciesOFraud and duplicate

paymentsORegulatory issues

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The Accounts Payable Foundation

OBasicsOStrong Internal ControlsOCurrent Best PracticesORegulatory IssuesOEfficiency

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The Checklist

O List of 25 questions focusing on the foundation issues

OSeparate document for you to use later

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The 25 Foundation Questions

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Question #1: Does Your Staff Understand the Basics?

ODocumentsOThree-way matchOHandling of both PO and non-PO invoices

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Invoices: Types

O PO invoicesO Non-POO Check requestO Expense

reimbursement

Invoice Types

PONon-Po

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Question #2: Has there been adequate training provided for the staff?

ONew hiresOUntil they are

comfortableONew proceduresOPolicy and procedures manual

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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 creativityO Rigid coding standardsO Duplicate invoices weeded out and

not paid

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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 understandsO Official start date – after training

O Expect a lot of changes in coming months/years as technology makes inroads

O Changing best practices

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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 itO No shortcutsO What’s in the manual

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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 practicesO Not necessarily the fastest way

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Question #7: Do you have no more than one person handling each leg of the P2P process?

O Segregation of duties: appropriateO Includes the purchasing legO Means collusion is necessaryO Makes internal fraud harder to commit

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Question #8: Does your segregation of duties workflow include the necessary provisions for backup when someone

is out of the office?

O Often over-lookedO Makes segregation of duties more

difficultO No sharing of passwords

O Bigger issue in coming years as AP departments get smaller

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Question #9: Have you checked to make sure old accesses to your system were turned off in cases of promotions or

terminations?

O Often forgottenO Run a reportO Make this part of standard

procedures

O Terminations too!!!!

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Question #10: Does your staff understand the importance of not sharing passwords?

O Negates segregation of duties issuesO No audit trail

O A firing offense in some companies

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Question #11: Do you have a policy and procedures manual for your accounts payable function?

O Documents what’s doneO Key to a standardized processO Can be used as a training manualO Reference guide

O Critical for tasks not performed regularly

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Question #12: Does your policy and procedures manual accurately reflect the work being done in the department?

O UsefulnessO EffectivenessO Can it be used for training

O Not just given to someoneO Can it be used as a reference guide

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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 beO Questionable training/reference tool

O Doesn’t have to be printedO Mainly a PDF

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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, outdatedO Changes not reflected

O Five year old manual probably needs a massive overhaulO E-mailed invoicesO Cloud technologyO BYOD

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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

businessO New processesO Regulatory pressures

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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 enhancementsO Costs coming downO Would invoice automation be within

the reach of your organization now?

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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 islandO Part of a bigger enterprise

O Don’t want to create problems elsewhere

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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 processO Information Reporting

O TIN MatchingO Sales and Use Tax

O Accruing Use TaxO Unclaimed Property

O Keeping careful track of escheatable items

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Question #19: Do you keep up-to-date on all regulatory issues affecting accounts

payable?

O Frequent changesO Especially 1099s

O Feds checking and more persistentO New report on worker classification

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Question #20: Do you keep your eyes open for new regulatory issues the AP team needs to understand?

O Pharmaceutical companiesO Sunshine Act

O New issuesO OFACO FCPA

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Question #21: Do you continually look for ways to make your accounts payable process more efficient?

O Continued pressureO Do more with lessO New regulatory compliances

O Process improvementsO Technology can help

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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 processO Good suggestions

O Manager’s role: Make sure they don’t create a problem elsewhere

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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

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Question #24: Do you know what new technology your competitors and peers are using?

O Hard to know where to startO Piggy back on others’ successesO Making the case to management

O AskO Chapter meetingsO VendorsO LinkedIn

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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 everO Visit websitesO Watch online videosO Ask for an online demo

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Concluding Thoughts

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ConclusionO Strong foundation is criticalO What you build today won’t last

foreverO Periodic tweaks necessary

O And don’t forget technologyO It will play a huge role in the AP

department of the futureO For organizations of ALL sizes

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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

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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

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About Mary SchaefferEditorial Director & PublisherCRYSTALLUS, 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

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