Do you feel as though at times, your Accounts Payable department could run a little more efficiently? This informative guide to accounts payable best practices is for you!
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A GUIDE TO
THE STEP-BY-STEP GUIDE TO A/P BEST PRACTICES AND
HOW YOU CAN IMPLEMENT THEM FOR $UCCESS
Best Practice 1- Do You
Have What You Need to
Do Your Job Efficiently?
Best Practice 2- It’s OK to
Best Practice 3- Is you’re
A/P Department as Safe
as It Can Be?
- A PUBLICATION from OnPay Solutions-
Do you feel as though at times, your Accounts Payable department
could run a little more efficiently?
Do you feel as though time and money are sometimes wasted on
getting the “little things done”….little things that prevent you from
really focusing on the bigger, more important duties?
Do you feel as though you’re A/P department isn’t as safe and secure as
it could or should be?
If you said YES to any of the above questions, then this eBook is for you!
The Right Tools
ERP and Accounting Software Fall Short of Delivering what
Accounts Payable Departments Really Need
Modern ERP and Accounting Software packages often come
with payment automation technology built in to their systems.
This includes the ability to print business checks using a desktop
laser printer and make electronic ACH payments with
remittance detail delivered directly to a payee via email.
We are often asked why a business should use a third-party
payment platformif the company’s accounting system or ERP
has the technology built-into it.
The most important reason:
Security and control of the process should be the single most
important consideration that a company should have regarding
the automation of payments.
There are three ways that most accounting and ERP systems fail
to deliver the security that an organization needs most.
First, we find that check printing directly from an Accounting or ERP
system to a desktop laser printer can typically be performed by
anyone who has access to the Account Payable module.
Best practices for A/P dictate that there should be a separation of
duties between entering checks and printing checks. Even when a
system specifies this separation, most ERPs allow anyone with
“check writing access” to print checks.
Look for a payment system that separates duties at the log-in
level… by the use of a password access to gain access to the printing
feature, thereby ensuring that only the users who have printing
rights can perform the check printing.
Also keep in mind that in addition to separation of duties, one
should seek a system that tracks each user’s activities by an
application’s audit report.
A standard desktop laser printer can be switched in to “Copy” mode
or have a built-in “Reprint” button that can be enabled after a
document is sent to it.
This is a deal-breaking security concern.
An unscrupulous individual may print a check to the printer, switch
the printer in to copy mode and reprint an unlimited, unaudited
number of reprinted negotiable documents.
Always seek a check writing software that works exclusively with
certified MICR printers that have the “Copy” and “Reprint” feature
disabled. Or better yet, choose to outsource the print and mail.
Again, the wrong person with access to a printer may be able to
“extract information” from memory and create negotiable
For this reason we recommend that printers are secured through a
special setting which will “wipe clean” all memory after a check run
There are a variety of other reasons we encourage companies to
consider handling payables outside of their ERP systems.
Chapter 2 of this eBook will provide more insights.
We recently had a discussion with a very large company about
Vendor Management that reminded us of just how daunting
it can be to maintain the company vendor database.
Simply managing the vendors can be overwhelming. With
more data mining and BI software available, companies are
now beginning to understand how they interact with their
This information can then point them then in the right
direction as they seek to expand their Electronic Accounts
Payable Program (EAP) and leverage vendor relationships for
From the vantage point of having more information and
knowing that it is best to pull such vendors into an EAP, how
does a company collect the ACH instructions from the
database of thousands of vendors?
•Who will call the vendors
•Who will collect the ACH instructions
• Who will key data into the Accounting or ERP system
•How will we keep this vendor data secure... and the questions
of security could go on.
This may lead them to believe that migrating to E-Payments
seems to be more work, not less and without the time,
resources and the budget to address the migration that it's best
to keep business as usual.
To address this problem, Vendor Management Services exist to
help collect data and many offer access to vast databases of
corporate ACH instructions and Credit Card Acceptors.
specifically for your vendor database.
Others combine a communications program with a web portal
allowing a vendor self-service model to collect ACH and Credit
Card deposit instructions.
Any of these programs may work for your company but most
come with hefty up-front fees or reoccurring monthly fees.
enrollment services, keep
the following goals in mind:
Seek a vendor management service provider who can
streamline communication and launch your E-Payment
program in 30 to 45 days.
Work with a company that will help your company analyze
its vendor database then set a goal of converting up to 80%
of your overall vendors, but 60% of your most frequently
paid vendors, to ACH or Credit Card.
4) Do not require a significant change to current A/P processes
to make the move to electronic payments. Seek a program
that allows you to issue electronic payments even when/if
your accounting system can only issue a check file.
Vendor management and vendor data collection and analysis
may discourage or dispirit —BUT it doesn’t have to. Follow the
checklist above and you will find the right service for you.
Protection & Security
If your goal is to not waste money and be secure, then an ERP is
NOT the way to go...A Payment Automation Hub is the ticket.
Last year alone, Panorama Consulting Solutions reports that ERP
implementations cost most companies 5% of their overall
operating budget. And, enhancement projects (many of which
included electronic payment processes) failed to stay on track in
This is also despite the fact that some ERP projects were on and
even under budget. Regardless of the statistics, there are some
that just haven't given up on this process that is less efficient.
under budget. Regardless of the statistics, there are some that just
haven't given up on this process that is less efficient.
In addition to the continuing inefficiency of issuing payments via an ERP
or accounting system, it is also less effective when it comes to security.
Below are three ways a payment automation hub can protect you.
3 Things to look for in a Payment Automation Hub (So it will PROTECT
1. The Payment Hub forces a separation of duties by the use of
password access to the printing feature. Only users that have
print rights will be able to print. Every other user is not only
blocked out, but monitored by an application’s audit report.
2. The application works exclusively with a SAEE16/SOC II certified
print and mail center.
3. Avoid desktop computers that have built in memory, which
makes it easy for A/P Departments to fall victim to individuals
stealing their data.
A Payment Hub is the Payment Automation Solution that accounts
payable departments really need.
Protect yourself by stepping away from payment modules in ERP's.
Protect yourself with a solution based payment automation hub.
Can HELP YOU