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Honest Abe’s Accounts Payable Tips

30th Apr 2014
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Sometimes, just to shine a new light on things, I like to imagine how one of our forefathers might have handled the same problems that we face today. I cannot think of a better perspective to examine than that of President Lincoln. I am no historian, but I think I can imagine this persistent man as the accounts payable type. Let’s look at how his approach might be different.

Give me six hours to chop down a tree and I will spend the first four sharpening the axe.
Too often, we see new software or a recommended operational procedure and jump in with both feet. AP department changes affect the flow of money…and every person on your team that moves it from one place to another. It’s important to do your research and analysis, then take the time to properly implement change so that nothing gets lost in the shuffle. Then, you can cut down the tree!

If once you forfeit the confidence of your fellow-citizens, you can never regain their respect and esteem.
Remember, the AP department is the nerve center of financial operations. You definitely don’t want to do anything shady that could trigger a mutiny. You could lose respect and a whole lot more! And, never give all financial responsibility to one person…just in case they lose their loyalty.

Don't interfere with anything in the Constitution. That must be maintained, for it is the only safeguard of our liberties.
In an accounts payable audit, you would be surprised how many contract compliance issues turn up. Often, there are discounts that a company could be taking advantage of, but someone lost track to the contract details or failed to apply them. So, it is important to have someone stay on top of contracts.

A house divided against itself cannot stand.
Proper financial management involves keeping everyone in the department on the same side. Never assume that just because they work for you that they have good intentions, or couldn’t swing after poor treatment. AP departments are ripe for fraud. Frequently educate team members and provide incentives that keep all eyes on a single goal. Oh, and don’t be a dictator. Nobody likes that!

Whatever you are, be a good one.
Let’s be honest. If every business had its financial business tied up neatly, there would be no need for audits. The fact is, AP audits can “find” a lot of money when they delve into financial operations. The best departments have audits done regularly, then utilize the latest best practices to keep their ship sailing smoothly.

Thank you, Abe, for the insight!

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