Do you have a history of “stop supplies” due to unpaid accounts? This might be a sign that your accounts department needs an overhaul.
A fully functional accounts payable department is easy to spot according to Finance Specialist Carel Spies. One of the signs is an up-to-date creditor’s reconciliation. That includes “proof that all reconciling items are actioned and continuously followed up.”
Another indication is the “achievement of pre-set goals on reconciliations and creditors age analysis.”
It is also important to look at the number of errors that occur and the time it takes to process payments says Spies, who has 30 years of work experience within the finance and AP functions.
During the Essential & Best Practices for Managing Accounts Payable course, hosted by Alusani Skills & Training Network®, Spies covers in detail the key performance metrics to help participants identify any snags in the system.
If your department is fairly effective there are some things to look out for to keep it running smoothly says Spies.
Errors can easily arise when matching the invoice, delivery note and GRV to the purchase order details. This in turn leads to time wasting and “run around” as parties try to correct the mistake.
This process lies at the heart of the accounts department; therefore any errors on the matching system must be resolved immediately.
Ensuring that superiors regularly verify reconciliation is another good check to have in place. This may seem like a tedious and unnecessary practice but it will save the business time and money in the long run.
Training staff is critical to the performance of the department, says Spies. And the course is ideal for all levels of accounting professionals.
The highly interactive training course will cover the latest trends and techniques in accounts payable.
For more insights join the Essential & Best Practices for Managing Accounts Payable course held by Alusani Skills & Training Network®. For more information about our training courses please call 011 447 7470, email [email protected] or visit the website Alusani Skills & Training Network