Do the following before making any payments:
- Look at the invoice number; match this number to your records to make sure you haven’t already paid it
- Send the invoice to the owner to approve it; the owner is the purchaser. Owner acknowledgement makes the invoice legitimate
- Review the line item descriptions, What are they charging me for?
- The 3-way match: Match the invoice with the purchase order & receiving report
(This confirms what you ordered, what you received, and what you’re being billed for) - Separate the function of invoice verification & Approval from the function of cash disbursement
(The person that signs the check should be separate from the person processing the invoice) - Have enough money in your account before authorizing any payments
(In order to avoid additional fees such as overdraft fees) - Always negotiate before buying
(Negotiate! Negotiate! Negotiate! Everything is negotiable, or at least try) .
Posted in Accounts Payable
