Vendoring 101: Live Event Recap
Vendor Onboarding 101: How to Build a More Secure and Compliant Process
We recently had the pleasure of talking to Debra R. Richardson, LLC., who is using her 20+ years of experience in AP, AR, general ledger and financial reporting for Fortune 500 companies to help AP teams implement authentication techniques, internal controls and best practices to prevent fraud in the vendor master file. She also has a weekly blog and hosts the podcast: “Putting the AP in hAPpy”.
Thinking about moving to automation, but haven’t made the jump yet? Here are 3 actionable items that you can implement today to mitigate the risks associated with fraud and compliance and mistakes!
If you are in AP then you know the only way to verify changing account information is to pick up the phone and make that confirmation call. Right? Yes, but even this tried-and-true approach is flawed, so it can’t be the only practice in place to mitigate fraud.
What goes wrong:
Once you authenticate the requester (Debra outlined this process in the live event), you have to look at validation. Is the vendor real? Are they sanctioned? Is the data valid? There are many sanctions lists, but these are the three that are most common to most U.S. entities:
The thing to note is that these lists are not static; they are constantly changing, so you need to validate against these lists not only at vendor setup, but with every issued PO.
So, you put all these internal controls, authentication techniques and best practices in place, but how do you ensure that the team is really following those processes?
What do to now:
Ready to Make the Case for Automation?
If the the manual process of authenticating the requester, authenticating the data, validating the vendor data, confirming the vendor activity, and auditing at the vendor process level seems daunting, that’s because it is! Maybe it’s time to make the move to automation? (Link to calculator below.)
We walked through a formula to calculate what this process costs your organization, and what sort of return you could see with investing in automation.
At PaymentWorks, we have worked with prospects and customers to help actually quantify the cost benefit of automation in terms of time and resources. (If nothing else, this exercise would be a good part of your audit process). Our cost benefit calculator allows you to quantify the ROI of automating and securing the vendor on-boarding process – and all we need is just three simple data points from you.