ACC103. Accounting Best Practices - 20 hours. Objectives

Transcription

1 ACC103 Accounting Best Practices - 20 hours Objectives This course Accounting Best Practices will teach you how to adopt best practices within your accounting department. This will allow you to enjoy a host of benefits, not the least of which include improved customer service, cycle times, product quality, and profitability, as well as reduced error rates. Course Outline Chapter 1 - Overview of Best Practices Chapter 2 - How to Use Best Practices Types of Best Practices The Most Fertile Ground for Best Practices Planning for Best Practices Timing of Best Practices Implementing Best Practices Best Practice Duplication Why Best Practices Fail The Impact of Best Practices on Employees Chapter 3 - Accounts Payable Best Practices Implementation Issues for Accounts Payable Best Practices Pay Based on Receiving Approval Only Reduce Required Approvals Use Negative Assurance for Invoice Approvals

2 Designate Approval Stamp Positioning Base Approvals on Supplier Invoicing History Use Procurement Cards Use a Ghost Card Negotiate Procurement Card Rebates Route All Invoices Directly to Accounts Payable Split Payables Processing Based on Discounts Adopt a Standard Invoice Numbering Convention Automate Three-Way Matching Digitize Accounts Payable Documents Directly Enter Receipts into Computer Have Suppliers Include Their Supplier Number on Invoices Request that Suppliers Enter Invoices through a Web Site Audit Expense Reports Automate Expense Reporting Eliminate Cash Advances for Employee Travel Link Corporate Travel Policies to an Automated Expense Reporting System Match Travel Bookings to Expenses Centralize the Accounts Payable Function Store Late Fees in a Separate General Ledger Account Issue Standard Account Code List Link Supplier Requests to the Accounts Payable Database Shrink the Supplier Base Withhold First Payment until W-9 Form Is Received Automate Payments for Repetitive Invoicing Install a Payment Factory Eliminate Manual Checks Eliminate Wire Transfers Increase the Frequency of Check Runs Settle Foreign Intercompany Payables Have Regularly Scheduled Check-Signing Meetings Implement Positive Pay Incorporate Copy Protection Features into Checks Avoid Acronym Payees on Checks Revise Payment Terms for Electronic Payments Install Advanced ACH Debit Blocking Use a Signature Stamp Notify Purchasing of Lower Invoiced Prices or Terms Create Direct Purchase Interfaces to Suppliers Install a Low-Cost Spend Management System Use Blanket Purchase Orders Issue a Welcome Packet to New Suppliers Clean Up the Supplier Master File Adopt a Supplier Naming Procedure

3 Assign Payables Staff to Specific Suppliers Create Different Supplier Accounts for Different Terms Review Supplier Statements for Open Credits Issue Standard Adjustment Letters to Suppliers Chapter 4 - Billing Best Practices Implementation Issues for Billing Best Practices Avoid Missed Billings Remove Unnecessary Information from Invoices Mark Envelopes with Address Correction Requested Do Early Billing of Recurring Invoices Have the Sales Staff Review Contact Information for Recurring Invoices Review Billed Hours Early Issue Electronic Invoices Issue Single, Summarized Invoices Each Period Print Separate Invoices for Each Line Item Enhance the Invoice Layout Add Receipt Signature to Invoice Automatically Check Errors during Invoice Data Entry Proofread Invoices Have Delivery Person Create the Invoice Computerize the Shipping Log Track Exceptions between the Shipping Log and the Invoice Register Eliminate Month-End Statements Reduce Number of Parts in Multipart Invoices Chapter 5 - Budgeting Best Practices Implementation Issues for Budgeting Best Practices Link the Budget to Key Business Drivers Clearly Define All Assumptions Clearly Define All Capacity Levels Establish Project Ranking Criteria Apply Throughput Analysis to Capital Budgeting Establish the Upper Limit of Available Funding Identify Step-Costing Change Points Budget for Attrition Budget by Groups of Staff Positions Create a Summarized Budget Model for Use by Upper Management Include a Working Capital Analysis Use Activity-Based Budgeting Incorporate Target Costing into the Budgeting Process Link a Bonus Sliding Scale to the Budget

4 Use Flex Budgeting Incorporate Risk Analysis into Budget Modeling Automatically Link the Budget to Purchase Orders Issue a Budget Procedure and Timetable Preload Budget Line Items Adopt Two-Stage Capital Budgeting Purchase Budgeting and Planning Software Reduce the Number of Accounts Revise Budgets on a Quarterly Basis Simplify the Budget Model Use Online Budget Updating Operate without a Budget Chapter 6 - Cash Management Best Practices Implementation Issues for Cash Management Best Practices Access Bank Account Information on the Internet Automatically Apply Cash Avoid Delays in Check Posting Require Mailings to Mailstop Number Collect Receivables through Lockboxes Install Remote Deposit Capture Consolidate Bank Accounts Implement Physical Cash Sweeping Implement Notional Pooling Charge Back Treasury Fees to Subsidiaries Implement Controlled Disbursements Negotiate Faster Deposited-Check Availability Open Zero-Balance Accounts Chapter 7 - Collections Best Practices Implementation Issues for Collections Best Practices Accept Check Payments by Fax Clearly Define Account Ownership Optimize the Collections Staff Designate a Skip Tracing Specialist Utilize Collection Call Stratification Structure the Workday Around Prime Calling Hours Base Deduction Management on Transaction Volume Set Up a Periodic Payment Schedule Require Customer Billing of Marketing Deductions Grant Percentage Discounts for Early Payment Conduct Immediate Review of Unapplied Cash

5 Outsource Collections Prepare a Customer Bankruptcy Action Plan Sell Your Bankruptcy Creditor Claim Simplify Pricing Structure Write Off Small Balances with No Approval Report on Bad Debts by Salesperson Post Collection Results by Collector Create an Accurate Bad-Debt Forecast Use Automated Clearing House Debits Lock Access to the Credit-Hold Flag Maintain Customer Orders Database Subscribe to Special Event Notifications Set Up Automatic Fax of Overdue Invoices Issue Dunning Letters Automatically Automate Delivery of Overdue Invoice Information Use a Collection Call Database Access Up-to-Date Collection Agency Information Implement Customer Order Exception Tracking System Install a Dispute Tracking System Report on Ongoing Customer Complaints Link to Comprehensive Collections Software Package Use Real-Time Cash Application Techniques Chapter 8 - Credit Best Practices Implementation Issues for Credit Best Practices Create a Credit Policy Modify the Credit Policy Based on Product Margins Modify the Credit Policy Based on Changing Economic Conditions Modify the Credit Policy Based on Potential Product Obsolescence Centralize Credit Risk Analysis Preapprove Customer Credit Subscribe to a Credit Report Database Create an Internal Credit Scoring System Modify Credit Application Terms to Favor the Company Create a Credit Application Guidebook Create a Standardized Credit-Level Determination System Incorporate Collections Information into Credit Decisions Require a New Credit Application if Customers Have Not Ordered in Some Time Review the Credit Levels of All Customers Who Stop Taking Cash Discounts Call New Customers and Explain Credit Terms Issue a Payment Procedure to Customers Join an Industry Credit Group Refer a Potential Customer to a Distributor

6 Require Intercorporate Guarantees Obtain Check Verification and Guarantee Coverage Obtain Credit Insurance Obtain an Export Credit Guarantee Shorten the Terms of Sale Insist on Lien Rights Offer a Financing Program Combine COD Terms with a Surcharge Chapter 9 - Commissions Best Practices Implementation Issues for Commissions Best Practices Automatically Calculate Commissions in the Computer System Calculate Final Commissions from Actual Data Construct a Standard Commission Terms Table Periodically Issue a Summary of Commission Rates Simplify the Commission Structure Include Commission Payments in Payroll Payments Lengthen the Interval between Commission Payments Pay Commissions Only from Cash Received Increase Commissions for Cash in Advance Payments Periodically Audit Commissions Paid Install Incentive Compensation Management Software Post Commission Payments on the Company Intranet Show Potential Commissions on Cash Register Chapter 10 - Costing Best Practices Implementation Issues for Costing Best Practices Audit Bills of Material Audit Labor Routings Eliminate High-Leverage Overhead Allocation Bases Simplify Overhead Allocations Assign Overhead Personnel to Specific Subplants Use Perfect Standards for Material Variance Reporting Eliminate Labor Variance Reporting Follow a Schedule of Inventory Obsolescence Reviews Eliminate the Tracking of Work-in-Process Inventory Implement Activity-Based Costing Implement Throughput Accounting Implement Target Costing Track Excess Capacity Limit Access to Unit of Measure Changes Report on Landed Cost Instead of Supplier Price

7 Report on Total Customer Price Review Cost Trends Review Material Scrap Levels Revise Traditional Cost Accounting Reports Chapter 11 - Filing Best Practices Implementation Issues for Filing Best Practices Improve the Mailroom Interface Reduce Keystroke Errors Use Multiple OCR Engines for Data Capture Add Digital Signatures to Electronic Documents Archive Computer Files Implement Document Imaging Eliminate Stored Paper Documents if Already in Computer Extend Time Period before Computer Records Are Purged Extend Use of Existing Computer Database Improve Computer System Reliability Adopt a Document-Destruction Policy Eliminate Attaching Back-up Materials to Checks for Signing Eliminate Reports Move Records Off-Site Reduce Number of Form Copies to File Use Carts for Portable File Storage Chapter 12 - Finance Best Practices Implementation Issues for Finance Best Practices Use an Investment Strategy for Short-Term Investments Use Invoice Discounting Sell Securities under the Regulation A Exemption Sell Securities under the Regulation D Exemption Set Up Supply Chain Financing Obtain Cash through Crowdfunding Join a Barter Network Automate Option Tracking Automate 401(k) Plan Enrollment Grant Employees Immediate 401(k) Eligibility Consolidate Insurance Policies Obtain Advance Rating Assessments Rent a Captive Insurance Company Use Netting to Reduce Foreign Exchange Settlements Install a Treasury Workstation Connect to the SWIFT Network

8 Optimize the Organization of Treasury Operations Hedge Foreign Exchange with Forward Exchange Contracts Hedge Foreign Exchange with Currency Futures Lock in Interest Rates with an Interest Rate Swap Chapter 13 - Financial Statements Best Practices Implementation Issues for Financial Statements Best Practices Move Operating Data to Other Reports Restrict the Level of Reporting Write Financial Statement Footnotes in Advance Create a Disclosure Committee Automate Recurring Journal Entries Automate the Cutoff Avoid the Bank Reconciliation Defer Routine Work Eliminate Multiple Approvals Eliminate Small Accruals Reduce Investigation Levels Assign Closing Responsibilities Compress Billing Activities Conduct Transaction Training Continually Review Wait Times Convert Serial Activities to Parallel Ones Create a Closing Schedule Document the Process Restrict the Use of Journal Entries Train the Staff in Closing Procedures Use Cycle Counting to Avoid Month-End Counts Compress Public Company Closing Activities Use Standard Journal Entry Forms Complete Allocation Bases in Advance Reconcile Intercompany Transactions in Advance Conduct Daily Review of the Financial Statements Chapter 14 - General Best Practices Implementation Issues for General Best Practices Apply Run Charts to Accounting Processes Apply Check Sheets to Accounting Processes Apply Value Stream Mapping to Accounting Processes Apply the Production Cell Layout to Accounting Create a Best Practices Support Center Consolidate All Accounting Functions

9 Continually Review Key Process Cycles Create a Policies and Procedures Manual Eliminate All Transaction Backlogs Implement Process-Centering Remove Clutter from the Accounting Workspace Issue Activity Calendars to All Accounting Positions Switch to Online Reporting Track Function Measurements Discuss Major Accounting Decisions with Auditors Create a Contract Terms Database Install a Knowledge Management System Monitor Fixed Assets with Wireless Sensors Create an Online Tax Policy Listing Designate a Tax Liaison for Each Government Jurisdiction Assign Tax Staff to Business Units Outsource Tax Form Preparation Submit Electronic Tax Returns to the IRS Pay Federal Taxes Online Create Accounting Training Teams Create an Ongoing Training Program for All Accounting Personnel Implement Cross-Training for Mission-Critical Activities Chapter 15 - General Ledger Best Practices Implementation Issues for General Ledger Best Practices Eliminate Small-Balance Accounts Modify Account Code Structure for Storage of ABC Information Create Alphanumeric Department/Subsidiary Codes Reduce the Chart of Accounts Use Identical Chart of Accounts for Subsidiaries Require Senior Approval to Add Accounts Use Data Warehouse for Report Distribution Use Forms/Rates Data Warehouse for Automated Tax Filings Use the General Ledger as a Data Warehouse Restrict Use of Journal Entries Avoid General Ledger Posting Bottlenecks Have Subsidiaries Update Their Own Data in the Central General Ledger Prescreen Construction-in-Progress Entries Chapter 16 - Internal Auditing Best Practices Implementation Issues for Internal Auditing Best Practices Annually Update an Internal Control Assessment of Each Business Unit Issue Self-Audit Guides to Business Units

10 Recommend Business Process Improvements to Business Units Track Audit Results through Business Unit Surveys Train Business Unit Staff on Control Issues Train New Business Unit Managers on Control Issues Avoid Overauditing of Internal Audits Complete All Internal Audit Work Papers in the Field Create a Control Standards Manual Create an Online Internal Audit Library Create and Disseminate Information from a Best Practices Database Outsource the Internal Audit Function Schedule Some Internal Audits on a Just-in-Time Basis Schedule Internal Audits Based on Risk Use Workflow Software for Internal Audits Implement Continuous Controls Monitoring Fill Internal Audit Positions from Operations on a Rotating Basis Add Specialists to Audit Teams Assign an Auditor to Be a Relationship Manager with Each Business Unit Assign Internal Auditors to System Development Teams Create an Auditor Skills Matrix Use Excel for Continuous Auditing Support the Outside Auditors Chapter 17 - Inventory Best Practices Implementation Issues for Inventory Best Practices Audit Bills of Material Conduct a Configuration Audit Modify the Bills of Material Based on Actual Scrap Levels Review Inventory Returned to the Warehouse Modify the Bills of Material for Temporary Substitutions Use Bills of Material to Find Inventory Made Obsolete by Product Withdrawals Compare Open Purchase Orders to Current Requirements Reject Unplanned Receipts Obtain Advance Shipping Notices for Inbound Deliveries Eliminate the Receiving Function Use Standard Containers to Move, Store, and Count Inventory Use Different Storage Systems Based on Cubic Transactional Volume Organize the Warehouse by Storage Zones Optimize Inventory Storage through Periodic Location Changes Maximize Vertical Storage Space Use Narrow Aisles in Manual Putaway and Picking Zones Eliminate the Warehouse Audit All Inventory Transactions Compare Recorded Inventory Activity to On-Hand Inventories

11 Eliminate the Physical Count Process Cycle-Count Based on Usage Frequency Lock Down the Warehouse Area Move Inventory to Floor Stock Segregate Customer-Owned Inventory Streamline the Physical Count Process Track Inventory Accuracy Train the Warehouse and Accounting Staffs in Inventory Procedures Initiate Warehouse Staff Self-Auditing Verify That All Receipts Are Entered in the Computer at Once Record Inventory Transactions with Bar Codes Record Inventory Transactions with Radio Frequency Communications Track Inventory with Radio Frequency Identification (RFID) Eliminate All Paper from Inventory Transactions Install a Kanban System Eliminate All Transaction Backlogs Immediately Review All Negative Inventory Balances Reduce the Number of Products Reduce the Number of Product Options Design Products with Lower Tolerances Obtain Direct Links into Customer Inventory Planning Systems Adopt Just-in-Time Purchasing Shift Raw Materials Ownership to Suppliers Drop Ship Inventory Reduce Safety Stocks by Accelerating the Flow of Internal Information Reduce Safety Stock by Shrinking Supplier Lead Times Reduce Safety Stock with Risk Pooling Use Variable Safety Stocks for Fluctuating Demand Cross-Dock Inventory Use Overnight Delivery from a Single Location for Selected Items Focus Inventory Reduction Efforts on High-Usage Items Eliminate Redundant Part Numbers Standardize Parts Identify Inactive Inventory in the Product Master File Chapter 18 - Payroll Best Practices Implementation Issues for Payroll Best Practices Disallow Prepayments Create Employee Self-Service for Payroll Changes Minimize Payroll Deductions Prohibit Deductions for Employee Purchases Post Forms on an Intranet Site Avoid Job Costing through the Payroll System

12 Use Computerized Time Clocks Use Exception Time Reporting Install Automated Timesheet Reminders Reduce the Number of Pay Codes Use Biometric Time Clocks Track Time with Mobile Phones Install Additional Time Clocks Issue Electronic W-2 Forms to Employees Transfer Payroll to Debit Cards Use Direct Deposit Automate Vacation Accruals Consolidate Payroll Systems Create a Payroll Call Center for Employees Eliminate Personal Leave Days Link Payroll Changes to Employee Events Install Manager Self-Service Link the 401(k) Plan to the Payroll System Link the Payroll and Human Resources Databases Minimize Payroll Cycles Minimize Off-Cycle Payrolls Create a Year-End Payroll Processing Checklist Electronically Verify Employee I-9 Information Reduce Taxes with the Common Paymaster Rule Outsource the Payroll Function Post FAQ Answers and Issue a Payroll Orientation