Get Rid of Rush Checks
A five-step plan shows you how.April 7, 2011
by Mary Schaeffer
Do you have documented policies and procedures to handle rush checks? Did you know this could be the first sign of a well-run organization with problems in the accounts payable process? If this has you scratching your head, let me explain. Rush checks are one of the leading causes of both duplicate payments and fraud. They can also get you into trouble on a Sarbanes-Oxley audit if you have too many of them. While everyone understands that no business runs so smoothly that the occasional rush check won't be requested, more than a few each month is a sign that the payment function is not running as well as it should.
Why the Fuss?
If fraud and duplicate payments aren't enough to convince you that your organization shouldn't permit rush checks (also known as ASAP checks or manual checks), here are a few more reasons to get rid of them:
The Action Plan
If you want to put a serious dent in the number of rush checks issued in your company, try the following:
ConclusionBy following the issue relentlessly and refusing to let it grow, you can make some serious headway in reducing the number of time-wasting, productivity-sucking, rush-check requests.
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Mary S. Schaeffer is the author of over a dozen business books including Controller & CFO's Guide to Accounts Payable (John Wiley & Sons) and Fraud in Accounts Payable: How to Prevent It (John Wiley & Sons). She is the publisher of the CFO & Controllers Accounts Payable Management Journal, a quarterly electronic journal for senior executives concerned about internal controls and cost control in their payment function, writes a monthly newsletter, a free weekly ezine e-AP News, speaks at accounts payable webinars, seminars and conferences and directs the organization's consulting practice.