Best Practices for Accounts Payable (Currently Unavailable)

Author: Mary Schaeffer

Best practices for the accounts payable function are critical for those organizations concerned about their profitability. For poor practices result in excess cost, duplicate payments, increased processing expenses, fraud and frayed vendor relationships. And, of course there is the growing issue of regulatory compliance as the Feds and states look for their fair share.

This course presents information the professional can use to identify best practice problems as well as regulatory concerns. Industry expert Mary S. Schaeffer explains the issues related to the accounts payable function to auditors, controllers, and managers. She then reveals the best practices for a myriad of these issues as well as identifying almost best practices for those cases where it is not possible to use the best practice and the worst practices which are likely to cause trouble.

Publication Date: May 2019

Topics Covered

• Managing the AP Function
• Master Vendor File
• Invoice Processing
• Invoice Problems
• Checks
• ACH (Electronic Payments)
• An Effective P”card Program
• Payment Strategy
• Policy and Procedures Manual
• Operational Aspects
• Duplicate Payment Issues
• Internal Controls
• Fraud Prevention: General
• Fraud Prevention: Checks
• Travel and Entertainment Policy
• Travel and Entertainment Issues
• Regulatory Issues: Information Reporting
• Regulatory Issues: Unclaimed Property
• Regulatory Issues: Other
• Technology
• Communications/Vendor Relations
• Cash Flow Management Issues

Learning Objectives

• Recognize how to establish strong master vendor file practices
• Identify how to incorporate appropriate segregation of duties into master vendor file process
• Describe how to create effective invoice receipt practices
• Recognize how to construct best practice invoice handling routines
• Describe effective practices when short-paying invoices
• Identify how to establish a process for managing discrepant invoices
• Recognize and implement a suitable process for storing check stock
• Identify the benefit of paying electronically
• Describe a process to weed out fraudulent change of bank account requests
• Recognize how to develop strong controls in a p-card program
• Identify ways to pay small dollar invoices without issuing a check
• Identify lost funds through an effective supplier statement review policy
• Recognize how to integrate the concept of segregation of duties across the payment process
• Recognize how to cncover practices that will eliminate weak control points
• Identify the importance of having a separate computer for online banking
• Recognize how to integrate check fraud prevention practices into the accounts payable process
• Identify how to create a strong travel and entertainment policy the is compliant with IRS guidelines for the entire organizations
• Identify how to develop policies for handling travel issues created when employees leave
• Identify what is required for information reporting to the IRS for independent contractors
• Describe how to integrate use of IRS TIN Matching into the new vendor setup function
• Describe how to create a policy that will enable the organization to report and remit unclaimed property in all instances
• Recognize how to incorporate regular OFAC checking into the payment process to ensure payments are not made to terrorists
• Identify potential situations where a payment may actually be a bribe to a foreign official in conflict with FCPA regulations
• Identify how payment timing can both help and hurt the organization
• Recognize how to create procedures to ensure all early payment discounts are earned

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Accounting (13 hours)

Program Prerequisites
None

Advance Preparation
None