Spring 2012 issue of Horizons

The new process was communicated to the controller and the AP staff to ensure they understood the new process and were on board with the implementation of the new process. After a month of following the new process, the outstanding invoices began to decrease to a manageable level. Like this example, it is possible your company can decrease costs, and utilize employees to their full capacity by assessing the administrative processes that are the backbone of your business.

• Invoices were not being entered into accounts payable until the invoice was coded • Unorganized flow of information to the centralized office • Invoices were handled multiple times before entry into accounts payable Once these issues were identified, the consultant measured the days between the invoice date, the date received at the centralized office, the date of entry into the system and the payment date. This analysis helped confirm that each of the above issues was causing a delay in payment. Next, the consultant re-mapped the process to: 1. Eliminate wasteful activities that required the AP department to handle invoices multiple times 2. Ensure invoices were sent directly to the centralized branch and 3. Create a procedure for entering uncoded invoices into accounts payable if certain conditions were met

RubinBrown’s Business Advisory Services Group Your company can improve your processes, comply with regulations, embed risk management programs, and strengthen information technology support through RubinBrown’s advisory services.

Michael T. Lewis, CFA - St. Louis Partner-In-Charge Business Advisory Services Group michael.lewis@rubinbrown.com 314.290.3397

Todd Pleimann, CPA - St. Louis Managing Partner Kansas City Office todd.pleimann@rubinbrown.com 913.499.4411

Mike Ramirez, CPA Director

Matt Wester, CPA, CFE - Denver Partner Business Advisory Services Group matt.wester@rubinbrown.com 303.951.1277

Business Advisory Services Group mike.ramirez@rubinbrown.com 314.290-3455

www.rubinbrown.com

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