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New Accounts Payable System Considerations

Are you looking into new systems or equipment for accounts payable? With technology changing the way processes are being done so quickly, it is imperative that future endeavors be properly taken into account. At RECAP’s Enhancing Accounts Payable Operations conference, Gary McNamee, President of IPS of Boston, urged the group to evaluate a number of issues whenever new hardware or software is being purchased. He urged the audience to make sure that any new system be able to adapt. Additionally, he suggested that the question, "Does the system you invested in adapt to electronic payments?" be asked. It should be seriously evaluated before a purchase is made. If such a system cannot adapt to an electronic environment, the company needs to consider how it will make electronic payments. As readers of Managing Accounts Payable are well aware, virtually all companies will be required to make their tax payments electronically starting July 1, 1997. So, sticking our head in the sand and saying, "Not at this company," will no longer work. Finally, once you’ve identified how you will make electronic payments, evaluate the additional expenses associated with this alternative payment mechanism: Could it be done for less if the additional funds were put toward purchasing equipment that would handle electronic payments?

"Accounts Payable Miscellany: New Accounts Payable System Considerations" ©1997 Institute of Management and Administration, Inc. For subscription information call (212) 244-0360 or send e-mail to SUBSERVE@IOMA.COM