Process: AP – Approve your payables once a year

Are you using pre-approved expense templates to save time on monthly expense approvals? Why not speed up the AP process with this? See the AP Approval template for ideas. What value is there in having someone look at a check for rent or a loan payment? The amount does not change and you have already approved the expense for the life of the lease or loan by signing the document, maybe years ago! No further value your honor, case dismissed, payable approved. Combine this with Who’s on First then thousands of payables are coded correctly for months! Even expenses that vary can be on this schedule. For example: electricity and gas. Look at the past twelve months of use (high and low bills) and use that for a floor and ceiling. If the monthly bill is less or more, have AP do the research to find out why. Check the past month’s weather for starters. Was it colder or warmer? Bingo. Variance in the bill is probably due to that. Think of all the time you will save with that! No utility bill invoices going back and forth to be approved. No delays in the process waiting for you since you have not reviewed the bill yet. How about all the walking back and forth to see if you have approved them yet? That’s not to say that someone should not be looking at the expense or ways to decrease it – electricity for example can be reduced by shutting off lights when not in use. Low hanging fruit here with tremendous return on investment. Do it NOW.

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