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Your Accounts Payable Department – Engine or Caboose?

Many companies view their A/P departments as little more than a necessity and believe the process of paying bills is far more simplistic than it is.  More often than not, the result is an A/P department from whom much is expected, but little is given.  These departments are typically staffed with personnel who are under-trained, overworked, underpaid and, for all practical purposes, overlooked.  Factor in the complexities inherent in a high volume practice with a high number of variables – purchase terms, approval amounts and payment methods – and any resulting inefficiencies and errors should come as no surprise.  
       
While an A/P recovery audit typically results in recovered funds which add to the bottom line near term, the real value lies in identifying the factors resulting in the profit leaks and designing and implementing solutions to minimize and/or eliminate those issues from recurring.  This is the essence of business process improvement.  

Business process improvement within the A/P context enables companies to essentially shift the function of their A/P departments from a reactive, time-intensive and low performing “caboose” to an efficient, strategic “engine” utilizing a proactive cash management approach.  

Defined guidelines for contract compliance, invoice processing and payment policies reduce cash misappropriations, minimize improper accounting practices and increase the overall efficiency of your A/P department, and your company.

Phillip Rogers; MAXIMUS/Managing Director – Recovery Audit Practice

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