Exclusively for Members of Accounts Payable Exchange

Presented by
ap.iofm.com
Pam Miller: Editor
RD Whitney: Executive Director
David Beck: Group Publisher
Monique Nijhout: Desktop Editor
Chris Horner: Copy Chief
2013 IOFM, Diversifed Business Communications. No part of this
publication may be reproduced, stored in a retrieval system or transmitted
by any means, electronic or mechanical, without prior written permission
of the Institute of Finance & Management.
3 ap.iofm.com
Why We Created This Special Report
Responsibility for running an accounts payable operation can be a daunt-
ing task.
There are a multitude of jobs that require your attention on a daily, weekly,
and monthly basis. Keeping up with the best known methods of dealing
with all of these jobs is a function that IOFMs AP Intelligence Team has
been performing for years. We have been providing AP professionals like
you AP best practices in the form of our reports, newsletters, webinars,
and conferences.
But sometimes all that information, as good and as valuable as it is, is hard
to digest on an ongoing basis. So what weve done with this publication is
condensed the best of the best practices into a series of checklists of ideas
and recommendations that you can scan and put into practice immediately.
The content in this handy special report was distilled from some of our
lengthier publications.
This report is designed to save you valuable time. It is organized in sections
that represent the foremost activities in an accounts payable operation:
invoice processing, payment processing, AP automation, master vendor fle,
T&E, p-cards, regulatory & tax issues, internal control, cash management,
managing operations, organizational strategy, customer relations, and staf
management.
A fnal reminder: should you need more detailed information and guidance
on any of the subject matter covered in these checklists, please remember
to visit our Accounts Payable Exchange website at ap.iofm.com.
IOFM AP Intelligence Team
5 ap.iofm.com
Checklist of Best Practices for Invoice Processing
Invoice Receipt
Have all invoices sent to AP first.
Insist the invoices be addressed to AP.
Inform the mailroom.
Add a generic e-mail address for
invoices.
Insist that vendors send invoices in one
format only.
Insist on buyers name or PO# on
the invoice.
Require the vendors include their vendor
number on invoice.
Date and time stamp invoices upon
receipt.
Set up a tracking system.
Dont forget about internally generated
invoices.
Orphan Invoices
Examine whats billed.
Keep a list of what each buyer
is responsible for.
Send it to purchasing.
Contact the vendor.
Return invoice to vendor.
Work with vendors.
Keep a red file.
Use a suspense account.
Matching
Match it three ways.
Match it two ways.
Match it four ways.
Match it four-plus ways.
Dont match small-dollar invoices.
Handling Exceptions on
PO-Based Invoices
Insist on complete POs.
Maintain cheat sheets.
Take the better price.
Contact purchasing.
Keep a daily file.
Set tolerances.
Contact receiving.
Contact the vendor.
Issue an adjustment.
Pay off the PO.
Flip the PO.
Implement e-invoicing.
Track problem vendors.
Invoice Adjustments
Short-Paying or Over-Paying Invoices
Dont just adjust.
Use a form.
Give the vendor the details.
Keep good records.
Dont ignore e-payments.
Know the deduction threshold.
Internally Generated Invoices
Create forms.
Move past paper forms.
Set up numbering systems.
Provide clear guidance.
Create a process.
Insist on solid backup.
Recurring Invoices
Use your systems recurring invoice
process.
Consider creating your own recurring
invoice process.
Set up a review process.
Centralize the process.
Outsource to a third party.
Invoice Approvals
Eliminate approvals for PO invoices.
Get a list of approvers.
Time-Saving Checklists of AP Best Practices
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Prepare signature cards.
Set up a process for keeping approver
data up to date.
Escalate approvals.
Use a log.
Develop a process for invoices already in
the pipeline.
Eliminate unnecessary approvals.
Keep a list of people in other
departments who do AP-related work
Small-Dollar Invoices
Analyze spending.
Use purchasing cards.
Move to electronic.
Request summary billing.
Consolidate payments.
Use Excel.
Pay via expense reports.
Dust off petty cash.
Coding and Entering Data
Standardize.
Keep it simple.
Set policy for invoice numbers.
Set policy for invoices without invoice
numbers.
Create a style guide and use it.
Use pick lists.
Avoid using the mouseuse hot keys
instead.
Link systems.
Use double data entry.
Review information entered on a daily
basis.
Make the review meaningful.
Name vendors using a convention.
Create code cheat sheets.
Monitor spreadsheets.
Question odd coding.
Use a suspense account.
Consider e-invoicing.
Invoices Without Invoice Numbers
Use a dummy number.
Create a style guide and use it.
Pressure the vendor.
Vendor Statements
Use for small-dollar invoices.
Ask for periodic statements.
Ask for a complete aged statement.
Prioritize the statements.
Use a cutoff for research.
Reconcile the statements.
Develop a process.
Do a spot check.
Look for orphaned credits.
Work credit balances.
Watch out for masqueraders.
Consider working with a third party
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Checklist of Best Practices for Payment Processing
Smart Payment Strategies
Know what it costs.
Consolidate payments.
Avoid pay alones.
Migrate to less expensive methods of
payment.
Check Printing
Communicate the schedule.
Use laser checks.
Prepare a log.
Limit the players.
Secure the signature device.
Secure the printer and any check
stuffing or folding equipment that is
used.
Account for damaged checks and
reprints.
Regularly review frequency.
Segregate duties.
Review system security regularly.
Create a process for check signing and/or
second signature.
Create a process for remittance
documentation.
Mail checks the same day they are
printed.
Test check formatting,
Have a backup plan.
Investigate outsourcing.
Find alternatives to paper checks.
Check Signing
Have board authorize signers.
Dont use top-level signers.
Keep the list close to the vest.
Go digital.
Use a two-signature policy.
Dont advertise the two-signature policy.
Spot-check manual signatures.
Establish a process for signers to ensure
this step adds value to the process.
Segregate duties.
Keep track of where the checks are.
Storing Check Stock
Lock it up.
Limit access.
Keep stock far from the printer.
Control the reorder process.
Be wary of off-site warehousing of check
stock.
Store check stock properly.
Distributing Checks
Set policy as mail all checks.
Keep a log of checks not mailed.
Be sure address matches vendor file.
Secure the finished checks.
Enlist mailroom help to maintain
security.
Pick the right envelope.
Hitch a ride.
Keep an eye out for unnecessary courier
expenses.
Rush Checks
Say No to all.
Require extra approvals.
Require all rush checks go through AP
manager.
Allow only for emergencies.
Charge for the service.
Explore alternatives.
Use rush check requests as an
opportunity to educate.
Do your homework first.
Keep a separate file.
Issue a report.
Review check run frequency.
Time-Saving Checklists of AP Best Practices
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Petty Cash
Set limits.
Have one custodian.
Guard against theft.
Segregate the fund.
Use as a last resort.
Get backup first.
Inspect backup before replenishing.
Inspect approvals.
Replenish exactly the amount that was
spent.
Cancel vouchers.
Do a periodic review.
Reconcile regularly.
Set up the petty cash custodian as a
vendor in the AP system.
Make check payable to custodian.
Firmly enforce usage rules.
Electronic Payments
Identify likely candidates.
Set up an enrollment site.
Use a form.
Sell it.
Maintain banking information securely.
Tie it to your main system.
Allow for remittance data.
Limit payment methods assigned to
vendors.
Establish testing procedures.
Establish a process for handling failed
payments.
Implement e-payment controls.
Consider using separate bank accounts
for electronic payments.
Renegotiate terms.
Limit wire payments to one department.
Record wire payments in accounting
system as soon as possible.
Identifying Duplicate Payments
Insist that vendors send invoices in one
format only.
Consider adding another PO box for
invoice receipt.
Establish rules around paying from
copies.
Do not ignore your systems duplicate
checking system.
Require your vendors to include their
vendor number from your system on all
invoices.
Maintain a clean vendor master file.
Account for multiple remit addresses.
Deactivate or purge expired vendors
from the system regularly.
Create a style guide for entering invoice
numbers and use it.
Create forms for internally generated
invoices.
Decrease the number of check requests.
Be careful when using spreadsheet
uploads.
Resolve exceptions promptly.
Do not pay statements.
Flag vendors who are paid by statement
or auto upload.
Flag vendors who are always paid by
p-card or wire.
Review data keyed into the system.
Run duplicate reports.
Do not stretch payments.
Work to eliminate the use of blanket
purchase orders.
Improve processes around back orders.
Be careful when implementing
technology.
Review statements periodically.
Do a recovery audit.
Centralize AP.
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Preventing Payment Fraud
Use positive pay.
Use payee positive pay.
Add check stock security features.
Move to electronic payments.
Use ACH debit blocks and filters.
Monitor accounts daily.
Set up separate accounts.
Avoid providing payment instructions by
phone or fax.
Use a dedicated PC to communicate
electronic payments.
Insist upon the best security tools and
keep them up to date.
Review and strengthen user ID and
password controls.
Consider using a UPIC (universal
payment ID code).
Use surprise audits.
Set up a tip hotline.
Consider outsourcing.
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Checklist of Best Practices for Accounts Payable Automation
Overall Planning
Know your invoice cost structure.
Benchmark your operations.
Analyze your invoice process.
Flowchart the existing process.
Identify major pain points.
Start an ongoing discussion.
Examine existing tools.
Determine requirements.
Expand the horizon.
Find the right technology match.
Right-size your solution.
Figure project costs and benefits.
Recruit a champion or sponsor.
Predict future obstacles.
Partner with IT.
Formulate a project plan.
Acquisition Options
Build it yourself.
Buy it.
Rent it.
Outsource it.
Offshore it (with great caution).
ERPEnterprise Resource Planning
Systems
Compare ERP processes to AP processes.
Avoid modifications.
Scope unavoidable modifications
carefully.
Implement gradually.
Review available reports.
Imaging
Evaluate the document types.
Determine where scanning will be done.
Test scanners.
Determine image quality needs.
Establish a quality control process.
Develop document preparation process.
Determine document access needs.
Develop indexing requirements.
Store in a searchable format.
Allow for workflow.
Dispose of the paper.
Data Capture
Sort out the acronyms.
Understand minimum scan quality
requirements.
Determine what data should be
captured.
Explore data integration.
Find out the accuracy rate.
Question the method.
Understand the correction process.
Electronic Invoicing
Know your options.
Segment vendors.
Get software vendors help with
suppliers.
Mandate use of e-invoicing.
Help vendors sell it.
Offer to offset costs.
Set realistic goals.
Obey the law of diminishing returns.
Offer a vendor portal.
Time-Saving Checklists of AP Best Practices
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Workfow
Assess data availability.
Think of your processes in terms of
rules.
Look beyond the buck.
Look for key features.
Examine existing systems.
Consider a stand-alone solution.
Piggyback on a larger system.
Use e-mail.
Developing a Business Case
Make an initial pitch.
Sell, but dont oversell.
Figure the costs.
Calculate the hard-dollar benefits.
Estimate the intangible benefits.
Learn the process.
Gather your team.
Work with your champion or sponsor.
Prepare and evaluate RFP.
Establish a method to monitor the
savings.
Selecting Solution Providers
Investigate reputation.
Go beyond reputation.
Main business or sideline?
Question depth of vendors development
& support teams.
Explore flexibility.
Understand the providers
implementation plan.
Assess personal compatibility.
Investigate support after the sale and
implementation.
Look into vendor recruitment.
Check references.
Take advantage of site visits.
Conducting Provider Demos
Prepare an agenda.
Write a script.
Consider a dry run.
Dont go into overtime.
Use a scoring system.
Planning and Implementation
Create a time line.
Map out the project.
Coordinate your plan with providers
implementation plan.
Create a communication plan.
Fix the existing process.
Get started on modifications.
Test and test again.
Create documentation and training
materials.
Train, train, train.
Manage change.
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Checklist of Best Practices for the Master Vendor File
Access and Control
Segregate duties.
Restrict access.
Enforce segregation of duties and access
control via the system.
Control access to information, too.
Raise awareness.
Establish and enforce an approval process.
Keep control in AP.
Adding New Vendors
Require a W-9.
Make it easy for vendors to supply their
W-9.
Determine necessary data.
Avoid appropriating fields.
Take advantage of system classification
and flagging.
Use a vendor add and change form.
Plan ahead when developing the form.
Determine the life cycle of the form.
Cross-check existing file.
Validate the vendors info.
Evaluating contact information.
Verify PO boxes.
Check all new vendors against denied
party lists.
Manage state reporting laws.
Data Entry Formats
Avoid punctuation.
Determine use of upper and lower case.
Use dropdown boxes.
Take a stance on initials.
Drop all titles.
Deal with The and A.
Develop a policy for And and &.
Use name of taxing authority.
Be wary of governmental entities.
Be judicious with the use of the second
line.
Manage multiple remits.
Establish rules for entering addresses.
Establish rules for other fields.
Make policy comprehensive.
Managing the Vendor File
Provide a vendor portal.
Exclude employees.
Carve out one-time vendors.
Or automatically set expiration date for
one-time vendors.
Develop rules for establishing a
permanent vendor.
Increase the use of p-cards.
Validate addresses.
Work all returned mail.
Set policy for obsolete addresses and sites.
Involve other departments in vendor
master file maintenance.
Establish vendor merging guidelines.
Purge inactive vendors.
Cleaning Up the Master Vendor File
Hunt potential duplicates.
Use Excel.
Sort on TIN.
Sort on address.
Sort on vendor name.
Name or address search query.
TIN query.
Consider starting from scratch.
Management Reporting
Changes to the file report.
New vendor additions report.
Inactive vendor report.
No-TIN report.
Dont limit access to these reports.
Spend management.
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Checklist of Best Practices for Travel & Entertainment
Policies and Procedures Manual
Make it formal and accessible.
Disseminate the manual widely.
Publish in a style suitable for frequent
updating.
Include issuance dates.
Be comprehensive.
Establish a policy for exceptions.
Require sign-offs on the manual.
Use an accountable plan framework.
Keep the manual up to date.
Enforce policies consistently.
Get senior managements support.
Travel Advances
Just say No.
Mandate the use of a travel card.
Limit advance amounts.
Do not allow advances to roll over.
Dont use cash.
Track travel advances carefully.
Require a written agreement regarding
cash advances.
Make provisions for payroll deduction.
Travel Arrangements
Use one agency.
Mandate use of preferred suppliers.
Hold travelers responsible.
Be careful with online booking.
Integrate the booking process.
Make bypassing the preferred methods
and vendors costly to the employee.
Automobile Expenses
Require a mileage log.
Compute income for personal use.
Reimburse using a mileage rate.
Meals and Entertainment
Set expense restrictions.
Control via approvals.
Understand tax issues.
Do not promote discrimination.
Prohibit dangerous activity.
Use of a Corporate Travel Card
Use a cardholder agreement.
Mandate usage.
Consider a one-card.
Use online tools.
Upload card transaction information into
your accounting system.
Ensure your GL is up to the task.
Hold employees liable.
Prohibit personal use.
Punish abusers.
Fire fraudsters.
Expense Reports
Educate employees.
Educate approvers.
Hold approvers responsible.
Cut off advances.
Manage manual methods.
Reject incorrect reports.
Develop a form for notifying filers of
errors.
Use technology.
Eliminate manual checks.
Discourage late filing by slow paying.
Handling Receipts
Increase the threshold.
Define what constitutes a receipt.
Require originals.
Deal with the paper.
Design an envelope form.
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Develop a missing receipt form.
Use a barcode.
Scan the receipts.
Use per diems.
Reimbursing Employees
Push direct deposit.
Use an e-mail remittance for
reimbursement via ACH.
Piggyback on payroll.
Decrease check reimbursement
frequency.
Mail all paper checks.
T&E Automation
Look for an end-to-end system.
Provide enough training.
Build in business rules.
Pre-populate reports.
Allow for electronic submission.
Use workflow.
Image receipts.
Automate reimbursement.
Link to the general ledger.
Generate post-trip exception and lost-
savings reports.
Generate trend reports.
Consider outsourcing.
Internal Control
Use surprise audits.
Dont audit every report.
Pick your targets.
Establish guidelines for processing and
auditing.
Establish guidelines for auditing
receipts.
Allow and encourage AP staffers to
question expense reports and receipts.
Supplement auditing with reporting.
Terminate employees for fraud.
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Checklist of Best Practices for Purchasing Cards
Program Design
Be involved from the get-go.
Determine executive attitudes to card
programs.
Obtain an executive sponsor.
Define the program.
Guesstimate the potential size of your
program.
Pick the right issuer.
Pursue competitive rebates.
Design the program and the card to
minimize accidental errors and misuse.
Make it easy to use.
Take advantage of online tools provided
by the card issuer.
Integrate p-card information into your
accounting system.
Designate a p-card administrator.
Develop a thorough training plan.
Do a pilot.
Develop a marketing plan.
Roll out in stages.
Have a joint vendor recruitment plan.
Policies and Procedures Manual
Get it out there.
Include the essentials.
Make changes annually.
Require initial and follow up training.
Enforce policies consistently.
Get backing from the top.
Increasing Usage
Make it accessible.
Choose the right cardholders.
Use variable spending limits.
Use MCC blocking judiciously.
Look in your vendor file.
Flag p-card vendors in the master
vendor file.
Modify your new vendor welcome
packet.
Explore new spend categories.
Integrate the p-card into ordering
processes.
Track performance.
Consider a zero limit or virtual number
system.
Win over big-ticket vendors.
Reward for growth.
Manage card refusers/implement a fee.
Put cards in AP.
Put cards in fixed assets.
Consider using a one card.
Go global.
Report on missed opportunities.
Include p-card transactions in AP total
spend analysis.
Rebates
Speak up.
Share the rebate.
Increase dollar volume.
Make payments faster.
Understand and manage other hurdles.
Track individual cards.
Review big-ticket purchases.
Do a rebate report.
Regulatory Compliance:
Sales and Use Tax
Take a sample.
Use a model.
Put the onus on cardholders.
Consider card issuers tax solution.
Look at the receipts.
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Internal Controls
Set a formal policy.
Watch your access ratio.
Use blocks and limits.
Deactivate p-card vendors.
Set up a separate PO box for p-card
vendors.
Check all documentation.
Use the card issuers online system.
Monitor off-contract spending.
Consider a virtual card.
Use exception reporting.
Use a default GL account.
Or map MCCs to your GL codes.
Upload transactions into the accounting
system regularly.
Consider a more frequent file upload.
Set up dispute resolution.
Establish suspension and cancellation
procedures.
Establish a line of communication with
HR.
Surprise cardholders with random
audits.
Use an assortment of audit techniques.
Fire fraudsters.
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Checklist of Best Practices for Regulatory and Tax Issues
Sarbanes Oxley Act
Flag officers and directors in master
vendor file.
Flag auditing firm(s) in master vendor
file.
Scrutinize payments to the flagged
vendors.
Review and enhance segregation of
duties.
Align system access with segregation of
duties matrix.
Create, maintain, and test
documentation.
Establish a change policy.
Increase focus on reporting-period close
requirements.
Use SOX to improve employee
compliance.
Take advantage of workflow and system
alerts.
Form 1099
Get a W-9 up front.
Register for TIN matching.
Require and record TIN matching.
Withhold at the proper rate.
Ensure that withheld amounts are
properly reported and remitted to the
IRS.
Consider increasing use of purchasing
cards.
Set up separate files.
Request an extension.
Get ready to run duplicates.
Combine reporting.
But meet state requirements.
Handle B-Notices.
Escape penalties.
Consider a technology solution.
Consider outsourcing.
Managing Nonresident Alien
Payments
Get a specialist.
Establish rules and procedures.
Get documentation before payment is
made.
Determine if payee is U.S. or non-U.S.
person.
Fess up to problems.
Use a data collection form.
Have your tax specialists develop the
form.
Get an ITIN.
Do the withholding.
Report annually.
Keep up to date on changes and new
regulations.
Sales and Use Tax
Develop formal policies and procedures.
Push to move responsibility to the tax
department.
Flag vendors based on tax status.
Train AP associates on sales and use tax
requirements.
Prepare sales tax exemption certificates.
Consider setting up GL codes for use tax
accrual.
Leverage technology.
Check p-cards.
Examine expense reports.
Monitor future adjustments.
Use a managed compliance agreement.
Keep adequate records.
Do a self-assessment.
Do a reverse audit.
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Value Added Tax (VAT)
Think beyond T&E.
Modify T&E receipt requirements.
Quantify your VAT exposure.
Watch your filing limits.
Watch the deadlines.
Send all at once.
Send original receipts.
Hurry up and wait.
Convert the payment.
Hire a specialist.
Outsource it.
Unclaimed Property (Escheatment)
Come clean.
Develop policies and procedures.
Establish ownership of unclaimed
property compliance.
Ensure bank accounts are reconciled in a
timely manner.
Require complete addresses in master
vendor file.
Research all payments returned as
undeliverable.
Establish a general ledger account.
Reduce the number of uncashed checks.
Investigate stale-dated checks.
Manage stops, voids, and re-issues.
Switch to electronic payments or
purchasing cards.
Review the process for intercompany
payments.
Review the process for recurring
payments.
Do your due diligence.
Avoid red flags in reports.
Maintain proper records and
documentation.
Watch out for SOX interplay.
Claim funds owed to your organization.
OFAC and Other Federal Laws
Afecting AP
Compare your master vendor file to the
OFAC list.
Make checking the OFAC list part of your
vendor set up process.
Sign up for change alerts.
Move more payments to purchasing
cards.
Comply with privacy laws.
Comply with TIPRA.
Review employee expense reports.
Include these requirements in your
policies and procedures manual.
Include these requirements in training of
AP personnel.
Record Retention and Destruction
Have an overall policy.
Use the Magic 7 rule.
Go electronic.
Throw out the paper.
Comply with Rule 26.
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Checklist of Best Practices for Internal Control
Overall Controls
Write clear policies.
Create an AP desk manual.
Use cheat sheets.
Segregate duties.
Ensure accounting software mimics
segregation of duties setup.
Periodically review system access.
Require system security.
Install physical safeguards.
Do independent checks.
Inquire about IT controls.
Monitor with KPIs.
Monitor AP clearing accounts.
Outsource some functions.
Invoice Handling
Input immediately.
Avoid duplicates.
Take the credits.
Stamp and deposit incoming checks
promptly.
Close out POs.
Monitor invoices on hold.
Be on the lookout for orphans.
Pay attention to intercompany transfers.
Watch the coding.
Keep code sheets up to date.
Payments
Beef up approval process.
Check signatures.
Monitor approval levels.
Use e-mail as a quasi-workflow system
for approvals.
Use built-in workflow rules.
Avoid the T&E trap.
Manage the discount process.
Protect check stock and checks.
Move to electronic payments.
Ensure bank accounts are reconciled
promptly.
Establish a process for stops, voids, and
re-issues.
Vendor Data
Control access.
Set up an approval scheme for new
vendors.
Search the file carefully.
Check new vendors against the employee
file.
Perform due diligence on the vendor.
Use a standard data entry format.
Do regular maintenance.
Run key reports.
Employee Reimbursements
Develop and maintain a T&E policies and
procedures manual.
Establish policy that most senior employee
in attendance pays authorized T&E
expenses.
Mail all T&E reimbursement checks.
Move to direct deposit for expense
reimbursements.
Enforce deadlines.
Invest in T&E automation software.
Train the approvers.
Empower the reviewer.
Do a spot audit.
Dont play favorites.
Company Credit Cards
Develop and maintain a policies and
procedures manual for cardholders.
Require a signed application and
agreement.
Distinguish fraud from misuse.
Use controls based on limits.
Use controls based on merchant
classification.
Beef up internal auditing.
Institute more user and approver training.
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Checklist of Best Practices for Cash Management
Invoice Discounts
Determine when the clock starts.
Take all discounts.
Establish default terms.
Enter terms into the system.
Review terms periodically.
Keep lists.
Increase terms standardization and
consolidation.
Work with purchasing.
Be on the lookout for special terms.
Handle picky vendors carefully.
Plan for big payment days.
Know the grace periods.
Pay back unearned discounts.
Track lost discounts.
Track discounts captured.
Dynamic Discounting
Add automation.
Ensure AP operations are adequate to
the task.
Work with finance.
Identify candidates.
Offer an opt-in or on demand
feature.
Educate AP staff.
Modify your processes.
Track the discounts taken.
Partnering With the Bank
Look at new services.
Balance price and service levels.
Go online.
Team up with treasury.
Partnering With Treasury
Communicate.
Improve quality and timeliness of AP
data.
Work on a joint project.
Ask treasurys advice.
Give treasury a role.
Share information.
Ratio Analysis
Segment AP data.
Monitor DPO.
Look at AP-to-inventory.
Be careful with tweaks.
Work with other departments.
Understand interconnectivity.
Develop new reports.
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Checklist of Best Practices for Managing Operations
Metrics
Measure what matters to your AP
department.
Get staff input.
Use automated systems.
Consider customizing reports.
Dont overcomplicate it.
Review for reasonableness and relevance
regularly.
Have fun.
Benchmarking
Set objectives.
Select the benchmarking team.
Map out your current processes.
Determine what to benchmark.
Use both internal and external data.
Spot trends.
Examine the forestnot the trees.
Use existing tools.
Tie to customer service agreements.
Evaluate regularly.
Share the results.
Performance Management
Use tools for continuous improvement.
Get together and brainstorm.
Use dashboards.
Budgeting
Keep track.
Analyze discrepancies.
Use metrics.
Align with organizational goals.
Use budget preparation as a tool.
Communicate.
Project Management
Make friends with the project
management team.
Scope it out carefully.
Plan thoroughly.
Make a calendar or time line.
Meet and monitor.
Communicate.
Test and train.
Watch out for scope creep.
Do whats right.
Spend Analysis
Understand the benefits.
Redeploy head count.
Work to increase visibility.
Enforce use of appropriate payment
methods.
Leverage automation.
Integrate systems.
Payment Recovery Audits
Look beyond duplicate payments.
Dont take it personally or point fingers.
Find the right auditor.
Ask questions.
Interview several candidates.
Use a weighted scoring system.
Determine how to handle the recovered
funds.
Determine how to account for the
auditors share of the recovered funds.
Take advantage of the auditors
expertise.
Understand the reports.
Share the results.
Expand the types of audits.
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Checklist of Best Practices for Organizational Strategies
Organizing the AP Department
Determine what tasks belong in AP.
Rank constituencies.
Choose (or not): generalists versus
specialists.
Address segregation of duties
requirements.
Avoid single threading.
Establish frequency of tasks.
Validate turnaround requirements.
Consider staffers skill sets.
Cue off your system.
Play it straight.
Or mix it up.
Create an organization chart.
Optimize staffer to supervisor ratio.
Monitor and tweak.
Shared Services
Get backing.
Standardize first.
Go green.
Address time zone issues.
Update written policies.
Phase it in.
Develop a customer service mind-set.
Use an SLA.
Automate.
Track KPIs.
Consider people issues.
Outsourcing
Ensure management is committed to
success, not just savings.
Balance risk and responsibility.
Choose strategic versus the entire
process.
Target generic processes.
Be creative.
Tap into expertise.
Borrow technology.
Launch an investigation.
Know all there is to know about your
vendor.
Understand pricing models and
terminology.
Factor in internal costs.
Define goals clearly.
Use an SLA.
Make it win-win.
Pursue gainsharing.
Get a third party "Seal of Approval"
Test prior to handing it over.
Dont outsource core knowledge.
Ofshoring
Assess the risk.
Consider using an outsourcing adviser.
Transform the process first.
Watch local inflation.
But dont focus on wages alone.
Beware of political unrest.
Do not take language for granted.
Adapt to the time difference.
Factor in the travel cost.
Consider nearshoring.
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Checklist of Best Practices for Customer Relations
Overall Success Tactics
Train in customer service techniques.
Set service level expectations.
Listen carefully.
Take responsibility if its yours.
Take action.
Keep your promises.
Move on.
Ask customers what they need.
Share with the staff.
Dealing With Vendors
Use a welcome letter and information
packet.
Create FAQs and post them to the web.
Track problem vendors.
Have a plan for problem vendors.
Develop a playbook or a wiki.
Establish a staff position.
Set up a generic e-mail inquiry address.
Use an IWR tool or vendor portal.
Working With Internal Customers
Communicate.
Put it on the Web.
Assign a devoted staffer.
Maintain an open door policy.
Walk in their shoes.
Find the root causes.
Share the positive.
Celebrate together.
Partnering With Purchasing
Foster a collaborative environment.
Explain the why.
Insist on accountability.
Dont handle dirty invoices.
Track the problems.
Establish a system.
Work with purchasing on delays.
Share information.
Join forces on a P2P system.
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Checklist of Best Practices for Staf Management
Hiring
Define your needs.
Consider temp to hire.
Evaluate rsums.
Rank the candidates.
Conduct the interviews.
Check references.
Search the web.
Close the deal.
Training
Develop a training plan for new hires.
Designate trainers.
Plan ongoing training.
Schedule it.
Provide certificates.
Recycle.
Cross-train.
Rotate.
Scheduling
Schedule to match customers needs.
Offer flextime.
Establish a time-off process.
Task scheduling.
Fostering Teamwork
Be a coach.
Prioritize.
Delegate.
Follow up.
Use teams to reorganize.
Identify the go-getters.
Step away.
Have their backs.
Celebrate.
Play.
Staf Motivation
Empower the staff.
Increase communication.
Establish an open door policy.
Do what you say you are going to do.
Get to know the staff.
Dont play favorites.
Create an innovative environment.
Adjust tasks.
Provide a career path.
Recognition
Give praise correctly.
Give praise often.
Accommodate differences.
Train supervisors.
Dont delay.
Use low-cost but effective ideas.
Performance Reviews
Look backward first.
Keep notes.
Reduce surprises.
Create the perfect evaluation form.
Watch your language.
Watch your documentation.
Document your own actions.
Avoid extremes.
Get employees involved.
Provide a plan for the future.
Use for disciplinary purposes.
Discuss raises separately.
Confict Resolution
Use mirroring.
Validate the request.
Empathize.
Make a deal.
Time-Saving Checklists of AP Best Practices
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Firing
Ensure policy has been followed.
Do it face to face.
Act early in the week.
Be brief and to the point.
Take security precautions.
Have helpful information ready.
Communicate with the rest of the staff.
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ap.iofm.com