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Keep Your Eyes Wide Open
to Minimize Costs |
No one wants to pay more for anything than they have to, especially when profits are involved. And you probably think that your company rarely -- if ever -- overpays for anything
Unless your buyers are clearly and continually talking to the folks who pay your bills, any number of procedures can fall through the cracks.
Take this quick quiz to see how efficiently your system is working. If you answer no to any of these questions, start making changes. You'll find your profit margins looking a lot healthier.
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Does your purchasing department keep accounts payable aware of correct prices, quoted discounts, and freight charges? |
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Does your accounts payable department match that information against the invoice before cutting a check? |
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Do employees upgrade your database to reflect all the new information, as well as last-minute changes? |
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Does someone in each department review the database regularly? If ordering and payment are done by the same department, give the staff a checklist to review at the point of purchase and at the point of payment. |
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As a backstop, do you audit your completed transactions periodically for overpayments? Recovery audits are tricky, so it's best to hire a professional to do it for you. Independent auditors generally earn a percentage of the amount they recover -- a built-in motivation to do a thorough job. |
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