Finance Department Best Practices

Use Detailed Vendor Error Reports to Proactively Reduce Errors

Best Practice (Good)

Use detailed vendor error reports to notify vendors of errors by frequency and type. Vendors can use the detailed information in the report to reduce their errors by making adjustments to their practices.

Typical Practice (Bad)

Expect invoices or documentation to contain some level of vendor errors. Once errors are identified, ensure that the invoices are returned for correction and resubmission. Vendors are responsible to fix the errors they make.

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Benefits:

Vendor errors may cause long delays in the fulfillment of the invoice because it takes time for invoices and documentation to be returned, corrected and resubmitted. Detailed vendor error reports notify vendors of encountered errors and allow them to reduce errors proactively. Vendors who are not aware of the details behind the errors they make may find it difficult to reduce those errors across the board.

Automate Late Payment Notifications to Increase Awareness of Delinquent Payments

Best Practice (Good)

Ensure that Accounts Receivable (AR) processors work closely with the IT Department to standardize and automate late payment notifications. Standardizing late payment notifications reduces the chance errors will be made within the notifications themselves; automating them allows notifications to be sent out in a timely manner.

Typical Practice (Bad)

Ensure that Accounts Receivable (AR) processors notify customers of unpaid bills as soon as delinquent accounts are discovered. The sooner delinquent accounts are discovered, the sooner customers can be notified.

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Benefits:

Working closely with the IT Department to automate late payment notifications reduces the number of times customers miss notices of late payments because the notifications were sent late or were not sent at all. Furthermore, standardizing automated notifications reduces the number of notification content reviews necessary and frees up Accounts Receivable (AR) processors to perform other tasks.

Establish Easy to Use T&E Forms to Improve and Streamline T&E Processes

Best Practice (Good)

Establish a quick and easy way for employees to submit expense-related claims. Easy to use T&E forms streamline the approval and reimbursement process, reduce overall stress of employees and managers and reduce the potential for errors.

Typical Practice (Bad)

Ensure that employees submit expense claims in a hard copy format that details all accrued expenditures. Submissions are then sent to the Accounts Payable (AP) Department for processing.

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Benefits:

T&E forms should be easy to understand and use. This reduces stress, confusion and the potential for errors. For instance, a spreadsheet that uses locked formulas or an automated T&E system reduces the need for employees to do math, thus limiting any potential errors that can be made. Such systems also streamline approval and reimbursement processes and reduce the time spent performing them. As a result, the overall stress of expense reporting is vastly reduced for employees and managers.

Educate Departmental Managers on Whistleblower and Retaliation Policies to Ensure Compliance

Best Practice (Good)

Ensure that Auditors educate managers in all departments about whistleblower and retaliation provisions in federal policies (e.g., the Whistleblower Protection Act, etc.). Retention and other appropriate corporate practices should be documented to ensure compliance.

Typical Practice (Bad)

Provide managers easy access to documentation involving whistleblower and retaliation policies, typically through an online Intranet-based resource. It is the responsibility of departmental managers to educate themselves and keep up-to-date with federal policies involving whistleblower and retaliation provisions.

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Benefits:

Whistleblowers provide tips on non-compliance procedures and practices to Auditors who are then able to use the information to address the issue at hand. Educating managers on federal policies concerning whistleblowers and retaliation against them ensures the safety of whistleblowers should anything happen and increases the chances of federal and company policy compliance.