Originally published in
Reprinted with permission

Finding the Culprit

Edited by Joanne Sammer

You’ve seen the scenario: Managers don’t want to blow their budgets or just don’t have time to go through their invoices. The result, of course, is a rush to get bills paid on the manager’s part and a greater chance that duplicate or incorrect invoices will make it through the system. "One company with more than 40,000 employees was able to trace a full 5 percent of the company’s erroneous payments to one manager because of slow payment and sloppy handling of invoices," said Jon Casher, chairman of RECAP, Inc, a payment recovery firm.

Working with these managers and closely monitoring their invoices can help catch erroneous payments before they happen. Casher also recommends that controllers scrutinize invoices coming from departments that have recently undergone change, particularly a change in leadership. "After all, the new manager has to clear out the old manager’s bills," he said. Similarly, controllers in companies undergoing widespread change, such as merger or acquisition, should be on guard lest invoices slip through the system.

Overall, Casher finds that companies that have strong budget control, continually report expenditures back to managers, and have a high degree of accountability for sticking to the budget are more likely to catch erroneous payments.

© December 1997 Controller Magazine