Accounts Payable, Where Inefficiencies Can Cost Your Company
If you strive to have the best business you can, and we assume you do because why else would you have a business, then you want to be efficient in every aspect of your business. And your focus shouldn’t end when it comes to your accounts payable department, but for so many firms, this is the reality.
Properly train your staff. When your staff has trouble with software or utilizing specific aspects of a computer, they simply move slower. When it comes to accounts payable, software and computers are going to be a large part of their detail. Check Issuing is one of the top accounts payable third-party software and though we are easy to use, it still requires a basic level of computer skills. Often, accounts payable staff were once in more old settings. Some businesses never evolved that department. You also want to make sure that the equipment and software you do use isn’t bogging down the department.
Accounts Payable is just as much about the risk prevention as it is about check writing. It is often assumed that this department has the simple function of just dispersing checks, but the truth is, the department has a much more complex function than that. Fraud and risk prevention should be at the very core of any accounts payable functions. Check fraud remains big business for the criminally minded. A core competency of fraud prevention is best served by using someone like us (Check Issuing), but if you do choose to do it on your own, remember that proper training is everything.
Compliance is a big deal when it comes to accounts payable. The IRS often loves to hassle the company who pays out the clients because, well, that’s where the bulk of the cash can be tracked; and the IRS is interested in the most bang for their buck. So making sure that your bookkeeping on outgoing checks is straight is essential.
Make sure your staff is good at client services. When you write checks to people, people are going to have questions. Accounting departments receive a lot of inquiries due to people wanting to find out where payments are, confirm payment amounts and ask about payment methods. You want to make sure that the staff responsible for answering these inquiries is a solid communicator who understands that they are representing the business.
The point is, accounts payable should be treated as an expansive, comprehensive part of your business. Mistaking it for a small, inconsequential, simply part of the business can set you up for all kinds of issues if you aren’t careful.