The document discusses the importance of having a solid foundation for the accounts payable function. It outlines 25 questions to evaluate how strong the current AP foundation is in areas like staff training, internal controls, policies/procedures, regulatory compliance, and efficiency. Having a good foundation is critical because problems can arise if the basics are not handled properly. The document encourages continuously improving and keeping up with new technologies and best practices to maintain a solid AP foundation over time.

1. The Accounts Payable Function:
Does Yours Have a Solid Foundation?
Mary S. Schaeffer
Accounts Payable Now &
Tomorrow

2. Agenda
O Introduction
O The 25 questions
O Closing comments
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3. Introduction
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4. A Solid Foundation
O Basis for everything else
O Problems creep in elsewhere
O Inefficiencies
O Fraud and duplicate payments
O Regulatory issues
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5. The Accounts Payable
Foundation
OBasics
OStrong Internal Controls
OCurrent Best Practices
ORegulatory Issues
OEfficiency
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6. The Checklist
O List of 25 questions
focusing on the foundation
issues
OSeparate document for you
to use later
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7. The 25 Foundation
Questions
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8. Question #1: Does Your Staff
Understand the Basics?
ODocuments
OThree-way match
OHandling of both PO and
non-PO invoices
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9. Invoices: Types
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O PO invoices
O Non-PO
O Check request
O Expense
reimbursement
Invoice Types
PO
Non-Po

10. Question #2: Has there been adequate
training provided for the staff?
ONew hires
O Until they are comfortable
ONew procedures
OPolicy and procedures
manual
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11. Question #3: Has there been re-training
to brush up and make sure every one is
on the same page for existing processes?
O Standardization
O No creativity
O Rigid coding standards
O Duplicate invoices weeded out and not
paid
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12. Question #4: Has there been
training for any new processes
or changes you have made?
O Not just “here’s the new process”
O Make sure everyone understands
O Official start date – after training
O Expect a lot of changes in coming
months/years as technology makes
inroads
O Changing best practices(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 12

13. Question #5: Do you periodically sit &
watch the processors handle invoices to
make sure they are doing it correctly?
O The way others are doing it
O No shortcuts
O What’s in the manual
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14. Question #6: Have appropriate internal
controls been fully addressed within the
department?
O Weak controls = more opportunities for mistakes and
fraud
O Employees typically know where weaknesses are
O Sarbanes-Oxley
O Usually equate to best practices
O Not necessarily the fastest way
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15. Question #7: Do you have no more than
one person handling each leg of the P2P
process?
O Segregation of duties: appropriate
O Includes the purchasing leg
O Means collusion is necessary
O Makes internal fraud harder to commit
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16. Question #8: Does your segregation of
duties workflow include the necessary
provisions for backup when someone
is out of the office?
O Often over-looked
O Makes segregation of duties more difficult
O No sharing of passwords
O Bigger issue in coming years as AP
departments get smaller
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17. Question #9: Have you checked to
make sure old accesses to your system
were turned off in cases of promotions
or terminations?
O Often forgotten
O Run a report
O Make this part of standard procedures
O Terminations too!!!!
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18. Question #10: Does your staff
understand the importance of
not sharing passwords?
O Negates segregation of duties issues
O No audit trail
O A firing offense in some companies
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19. Question #11: Do you have a policy and
procedures manual for your accounts
payable function?
O Documents what’s done
O Key to a standardized process
O Can be used as a training manual
O Reference guide
O Critical for tasks not performed regularly
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20. Question #12: Does your policy and
procedures manual accurately reflect
the work being done in the department?
O Usefulness
O Effectiveness
O Can it be used for training
O Not just given to someone
O Can it be used as a reference guide
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21. Question #13: Is your policy and
procedures manual updated every
time a change is made to your process?
O If not, not as useful as it could be
O Questionable training/reference tool
O Doesn’t have to be printed
O Mainly a PDF
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22. Question #14: If there have been no
changes to your process in a year, do you
review the manual at least annually?
O Without realizing it, outdated
O Changes not reflected
O Five year old manual probably needs a
massive overhaul
O E-mailed invoices
O Cloud technology
O BYOD
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23. Question #15: From time to time, do
you evaluate (either formally or
informally) new information related to
the AP procedures to see if it would
enhance your operations?
O Vendors changing the way they do
business
O New processes
O Regulatory pressures
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24. Question #16: Do you periodically
evaluate (either formally or informally)
new information related to technology
affecting the AP function to see if it
would enhance your operations?
O Lots of technology enhancements
O Costs coming down
O Would invoice automation be within the
reach of your organization now?
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25. Question #17: When evaluating the
integration of a new practice, do you
analyze not only how it would affect your
AP operation, but also other depts.?
O Accounts payable not an island
O Part of a bigger enterprise
O Don’t want to create problems elsewhere
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26. Question #18: Does your process include
steps that will enable you to meet all
regulatory issues accurately and timely?
O May add time to the process
O Information Reporting
O TIN Matching
O Sales and Use Tax
O Accruing Use Tax
O Unclaimed Property
O Keeping careful track of escheatable items
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27. Question #19: Do you keep up-
to-date on all regulatory issues
affecting accounts payable?
O Frequent changes
O Especially 1099s
O Feds checking and more persistent
O New report on worker classification
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28. Question #20: Do you keep your eyes
open for new regulatory issues the AP
team needs to understand?
O Pharmaceutical companies
O Sunshine Act
O New issues
O OFAC
O FCPA
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29. Question #21: Do you continually look
for ways to make your accounts
payable process more efficient?
O Continued pressure
O Do more with less
O New regulatory compliances
O Process improvements
O Technology can help
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30. Question #22: Do you regularly ask
processors for process improvement
suggestions & evaluate them to see if
they are effective for the entire staff?
O Closest to the process
O Good suggestions
O Manager’s role: Make sure they don’t
create a problem elsewhere
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31. Question #23: Do you keep your eyes
open for new technology that might
help your organization’s AP process?
O Only get so far with process
improvements
O Critical to keep up with technology
O New advances every year
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32. Question #24: Do you know what
new technology your competitors
and peers are using?
O Hard to know where to start
O Piggy back on others’ successes
O Making the case to management
O Ask
O Chapter meetings
O Vendors
O LinkedIn
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33. Question #25: Do you attend vendor’s
webinars, watch online demos to learn
what features are available and might
enhance your own operations?
O Finding information easier than ever
O Visit websites
O Watch online videos
O Ask for an online demo
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34. Concluding Thoughts
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35. Conclusion
O Strong foundation is critical
O What you build today won’t last forever
O Periodic tweaks necessary
O And don’t forget technology
O It will play a huge role in the AP
department of the future
O For organizations of ALL sizes
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36. Question #26: Have you requested a
product demo from Anybill yet?
OWhat are you waiting for?
OCall 877 426 9245
OE-mail info@anybill.com
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37. Questions/Comments
Share your thoughts and insights with
Mary Schaeffer by writing her at
marys@ap-now.com
 Sign up for her free weekly ezine at
www.ap-now.com/ezinesignup.html
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38. About Mary Schaeffer
Editorial Director & Publisher
CRYSTALLUS, Inc. publisher Accounts Payable Now & Tomorrow
newsletter
• Creator of Institute of Financial Operations Accounts Payable
Innovation Certificate program
• Editor-at-Large CFO Publishing’s Learning Pro: AP Edition
• Nationally recognized accounts payable expert and consultant
• Frequent speaker at seminars, conferences and online events
• Regular contributor to the AICPA’s Corporate Finance Insider
• Writes a free weekly e-zine, e-AP News
• Author 17 business books including the just-published 101 Best
Practices for Accounts Payable
• M.B.A. Finance, NYU
• B.S. Math, York College
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