Accounts Payables Best Practices

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Accounts Payables Best Practices Powered By Docstoc
					Accounts Payables
  Best Practices

Presented by:
Stout Causey Consulting
    January 15, 2003




                 Profit…from the relationship
                Agenda

   Stout Causey Consulting Overview
   Introductions
   Objectives
   Best Practices Discussion
   Disbursement Cycle
   Q&A



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  Stout Causey Consulting Overview
Stout Causey Consulting is a CPA / consulting firm that specializes
in recovery audit services, specifically accounts payable auditing and
related consulting surrounding the procurement to pay cycle. Our
aim is to help our clients anticipate and adapt to changing
environments, successfully meet the challenges they face, and take
full advantage of opportunities to enhance their prosperity.
Our firm’s philosophy is simple; we are team players dedicated to
adding to our clients’ success. Our mission is for our clients to be as
delighted with the process of working with us as they are the results
of the work.



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  Introductions - Brian M. Davis
Mr. Davis is a Manager in SCC’s recovery audit practice. His clients include
several of the most recognized companies in the world. Through
comprehensive reviews of both the operational and internal control aspects of
these companies, Mr. Davis has assisted in identifying processing errors that
have provided opportunities for cost savings, profit maximization, and cash
refunds.
Prior to joining SCC, Mr. Davis was employed by a “Big Four” accounting
firm where he specialized in Business Advisory and Assurance Services. Mr.
Davis received his accounting degree from the Towson State University,
where he graduated Summa Cum Laude. He is a member of the American
Institute of Certified Public Accountants and the Maryland Association of
Certified Public Accountants.



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   Introductions – Andrew Spahn

Mr. Spahn is a senior auditor within Stout Causey Consulting's Recovery
Audit service line. In this capacity, Mr. Spahn has had the opportunity to be
of service to some of the world’s leading public and privately held companies
in the following industries: Health Care, Cellular Communications, Internet
Services (ISP and Search Engine), Freight Transportation and Technology.

Prior to joining Stout Causey Consulting’s Recovery Audit service line, Mr.
Spahn gained an extensive knowledge base in corporate and individual tax,
financial statement audits and personal property tax.

Mr. Spahn received his B.S. in Accounting from Towson University.




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Objectives:


1.   Define Best Practices

2.   Define the Disbursement Cycle & How Best Practices
     Relate

3.   Provided a forum to discuss Questions / Concerns,
     Success / Failures

4.   Provide some universal Best Practices



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What are Best Practices?


A group of tasks that optimize the efficiency
(cost/risk) or effectiveness (service level) of the
business discipline or process to which it contributes.

A standard benchmark for world-class operations that
are replicable, transferable and adaptable across
industries.




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What Determines Best Practices?

It is important to recognize that many best practices are
not the same for all organizations. Best practices must
be determined for your organization based on several
factors, including:
             Industry
             Company size
             Resources available
             Corporate philosophy
             Current operating environment



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The Disbursement Cycle




     Purchasing
                                     Shipping/Receiving




                  Accounts Payable



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Get advice, Give advice

Complete these thoughts:

If there was one process that I could change
    to make my job easier, it would be…

In the last 18 months, a process change that
   occurred at my job that had the greatest impact on
   efficiency was…




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In What Areas Can Best Practices Be Implemented?


     1.   Invoice Processing
            –   Receipt
            –   Approval
            –   Keying
            –   Filing/Storage
            –   Other




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Coding Vendor Invoices

Slashes, Dashes, Periods, Commas & other characters
  Vendor Invoice #         Option 1                Option 2
  2/3784J90                  2/3784J90               23784J90
  1-34-1234-02               1-34-1234-02            134123402
  2#04951                    2#04951                 204951


Excessive Digits
        Vendor Invoice #                   Standard Coding
        92003CD948859                      03CD948859
                                           1 2 3 4 5 6 7 8 9 10




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Coding Vendor Invoices

Leading Prefixes, Zeros & Blanks
     Vendor Invoice #              Standard Coding
     INV29384                          29384
     INV00039485                       39485
     00000093849208                    93849208
     34 596002                         34596002

Recurring Payables
 Vendor Invoice #       Invoice Date          Standard Coding
 12-4585476               3/25/01            12-45854760301



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Disbursement Cycle Best Practices Areas



 2.   Vendor Set-up & Maintenance
      –   Acceptance criteria
      –   Account Set-up
      –   Invoicing Method
      –   Other




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Disbursement Cycle Best Practices Areas

  3.   Invoice Payment
       –   Controls
       –   Frequency
       –   Method
       –   Filing/Storage of Check Copies
       –   Other
 4.    Interaction with Purchasing
 5.    Contract Management


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      Q&A

Stout Causey Consulting is one of the fastest growing CPA
firms in the country. Since our inception in 1991, we have
been focused on providing our clients with measurable
business results. Today, we are partnering with some of the
largest companies in the world.
If you have any questions, please contact us:
           Brian Davis                 Andrew Spahn
          410-403-1610                 410-403-1554
      bdavis@stoutcausey.com        aspahn@stoutcausey.com




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