Many large organizations have made massive inroads into accounts payable and, quite frankly, will find this chapter rather basic. To those I say simply, move to the next chapter. However, many finance teams are wedded to Charles Dickens processes and procedures. This chapter is an extract from my white paper “50 + Ways to Improve Your Accounts Payable Function.”1
REMOVAL OF ALL CHARLES DICKENS PROCESSES
I believe the accounts payable team is the center of an accounting function, for without its smooth operation:
- Monthly accounts cannot be prepared promptly.
- The company does not, at any point in time, know its total liabilities.
- Budget holders spend too much of their valuable time processing orders and approving invoices for payment.
- There is a low level of accuracy in the monthly accounts due to missed liabilities and posting errors.
- The processing procedures are more akin to the Charles Dickens era than to the twenty-first century (after all, Charles Dickens had a checkbook and received paper-based invoices).
- Suppliers are forever on the phone querying payments.
- Expense claims are a nightmare for claimants and the accounts payable team.
The key twenty-first-century AP better ...