The primary objective of a company's accounting department is to expedite all financial transactions in a quick and efficient manner. The accounts payable function within the accounting department handles all the company’s expenditures from vendor payments to employee expense reimbursements and more.
An important goal for people in accounts payable is the timely entry of invoices for payment. The accounting department in most companies allows each person to set her own goals and objectives, in line with the department’s overall goals and objectives. The person who opens the mail will enters a date received on the invoice. The accounts payable person also date-stamps and initials the invoice when she processes it for payment. These steps allow review of the time it takes from receipt of an invoice until it is entered into the accounting system. This provides the accounts payable person or others with a means to measure her activities with respect to her goals.
While errors do happen, the idea is to reduce them or eliminate them as much as possible. Reducing errors requires focus on work, improved typing and 10-key entry skills. It also involves checking entered work after entry into the accounting system and making the necessary corrections right away. If you review entered work into the system by comparing it against the preposting report when finished, this allows you to correct and find any errors immediately.
Check Turnaround Time
While the check turnaround time isn’t always in the control of the accounts payable person, what is in her control is how fast checks are mailed once she receives them. In most companies, accounts payable checks are printed at least once a week. Meeting or exceeding goals and objectives requires stuffing the envelopes with checks upon receipt and mailing them as soon as possible. Mailing dates are noted on invoice vouchers or invoice copies that get filed.
The accounts payable function operates in support of all other accounting functions. The goals and objectives of this area means not only the timely and efficient recording of expenditures and check printing, but providing support to other areas of accounting as needed. This may include purchase order closeout, budget input into the system, file organization or more. Accounts payable might also review reports and double check accounting postings for errors or corrections as needed.