Accounting 201: Advanced Accounts Payable Concepts and Tools

Explore high-level accounts payable operations, from invoices and approvals to reconciliations and cash management, and preview five detailed topics on controls, electronic payments, policies, and the balance-sheet impact.

Establish an internal approval process for invoices with department managers approving costs before entry by accounts payable, using handwritten general ledger codes and signature boxes to ensure proper accounting.

Explore how electronic payments improve efficiency and control with wires, ach transfers, checks, and bank deposits. Enforce strict vendor creation, payment authorization, and bank access to prevent fraud.

Develop a policies and procedures manual for accounts payable that documents invoice entry, approvals, electronic payments, and Sarbanes-Oxley Act compliance with step-by-step guides and updates.

Manage cash flow by timing payments, leveraging early payment discounts, and forecasting weekly and monthly payables to optimize quarter end and year end cash presentation.

Learn to manage accounts payable by prioritizing squeaky wheel vendors, communicating cash plans, and negotiating payment schedules to preserve relationships and reduce stress.

Explore tips and strategies for accounts payable, including policies on expense reports, fraud prevention, unclaimed property considerations, payment strategies, and internal controls to reduce errors and ensure smooth operations.

Set the tone early with expense report templates, documented policies, required receipts, and defined approvals, and empower accounts payable to enforce rules and improve efficiency.

Implement fraud prevention in accounts payable by enforcing segregation of duties, separating check signing from mailing, vetting new vendors, and establishing approval thresholds and audits.

Navigate unclaimed property laws and the requirement to report uncashed checks to state authorities, including multi-state complexities, deadlines, bankruptcy considerations, and the option to use software or vendors.

Establish a fixed payment schedule with checks on the 15th and 30th, allow rare emergencies, involve accounts payable, and prioritize vendors to allocate a set cash amount.

Explore how internal controls prevent fraud and errors in accounts payable by logging invoices, routing for approval, and attaching backups, while aligning with best practices and Sarbanes-Oxley requirements.

Train and invest in accounts payable staff to clarify roles and master the system. Document procedures with screenshots and enforce segregation of duties to optimize flow, aging, and discounts.

Examine a case study of public utility accounts payable across 20 satellite offices, with strict approvals, invoice handling based on terms and due dates, and early payment discounts.

Examine a multi-state consulting firm that uses credit cards to fund software, earning points while risking missing backup for invoices. Highlight accounts payable challenges when offices fail to submit documentation.

Explore a high-volume case study of a regional grocery chain’s accounts payable, featuring dedicated store-level staff, invoice approvals, and vendor discounts via negotiated terms.

Implement the ten point checklist by establishing proper procedures and negotiating discounts with high-frequency vendors. Maximize accounting software to automate discounts, empower accounts payable, and limit monthly check runs.

Master accounts payable basics: segregation of duties, electronic processing, and standard terms like net 30 and 2/10, with invoice-by-invoice entry and secured voided checks.

Develop a dynamic accounts payable function as your company grows by applying best practices, policies, procedures, and systems to improve process flow and cash flow management.

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