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Submitted URL: https://share.stampli.com/e3t/Ctc/OO+113/cywmk04/VWW0Jh4cmxj4N3515c2tpQ1vW7bJF9w4-_2ylN8DGmDZ3q3phV1-WJV7Cg-KxW3lH42y8RDSK...
Effective URL: https://www.stampli.com/blog/accounts-payable/handling-slow-internal-invoice-approvals/?utm_campaign=drip38&utm_medium=e...
Submission: On May 25 via manual from GB — Scanned from GB
Effective URL: https://www.stampli.com/blog/accounts-payable/handling-slow-internal-invoice-approvals/?utm_campaign=drip38&utm_medium=e...
Submission: On May 25 via manual from GB — Scanned from GB
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<legend class="hs-field-desc" style="display: none;"></legend>
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<legend class="hs-field-desc" style="display: none;"></legend>
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* Handling Slow Internal Invoice Approvals
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HANDLING SLOW INTERNAL INVOICE APPROVALS
It would be nice if everyone did what they were supposed to do, especially when
it comes to something as simple as approving invoices for payment in a timely
manner. In the recent AP Now survey, the issue of slow internal approvals was on
the Top 5 Invoice Problems list with 66% of the respondents reporting that this
was a problem in their organization. In fact, it tied for second place on that
list.
Adding insult to injury, certain technologies seems to have made the problem
worse. The problem lies with a technology just about every organization uses.
There have been numerous reports of employees using Outlook’s programing
features to automatically delete, move to the spam folder or a special file, all
invoice reminders from accounts payable looking for approvals. While in theory
moving all reminders to a folder might not be a bad idea, it would only be a
good idea if that folder were looked at regularly. We know from experience; this
is often not the case.
LET’S TAKE A LOOK AT SOME STRATEGIES YOU CAN USE TO REDUCE THE EXASPERATING
PROBLEM OF APPROVER DAWDLING IN YOUR ORGANIZATION.
1. If you are using invoice automation, make sure and include automatic
escalations for several levels. So, if the immediate supervisor ignores the
notice to approve, it goes to his/her boss and so on. While this feature is
set up to handle vacations and unexpected absences it helps with the laggard
approver issue as well.
2. If you are not using automation, escalate the invoice for approval in a
similar manner manually, in cases of extreme tardiness.
3. If you can get a high-level executive to agree, have them send a note to all
tardy approvers reminding them of their responsibility in this arena.
4. Keep track of all early payment discounts that were lost due to tardy
approvals. Then tally the amounts per approver and publish the list
regularly. This might not make you popular, but it will help eliminate the
problem. You can warn offenders this will happen, if you are feeling kindly.
5. If you get charged late fees, keep track of them by tardy approver and
publish the list regularly.
Let everyone see what this is costing the organization. Note: This tactic will
not make you popular.
While most approvers don’t mean to cause problems, their inattention to details
and the approval process does just that for those processing invoices.
Mary S. Schaeffer, a nationally recognized accounts payable expert, is the
founder of AP Now, a company that creates business intelligence on all issues
impacting the accounts payable and payment function. She is the host of the AP
Now Podcast.
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