EZPayManager

Payment software solutions from ACOM help businesses minimize vendor complaints, and manage AP processes more effectively
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ACOM Provides a Total Accounts Payable Solution

ACOM also provides document management systems for the accounts payable process enabling you to:

1. Create a purchase order and issue it electronically
2. Capture the emailed invoice and printed receipt of goods, and reconcile the electronic files.
3. Automatically route the invoice for approval.
4. Create an electronic check, eliminating the costs and security risks of pre-printed checks.
5. Send payment and remittance advice electronically.
6. Link and store all supporting documents into one electronic file for instant retrieval.

Learn more about ACOM's Document Management for Accounts Payable

Top 10 Best Practices for Check Printing

This article is reprinted/republished by the express written permission of IOMA (The Institute of Management & Administration). ©2007; for more information about IOMA publications visit www.ioma.com

January 8, 2008

For years, we’ve been hearing about the disappearance of paper checks in favor of electronic payments. Well, that hasn’t happened. On average, about 75% of business-to-business payments are still made using paper checks—and 25% are made electronically. By 2010, this percentage is supposed to flip-flop—75% is expected to be electronic and 25% by paper check. We’ll see if this happens!

In the meantime, AP must deal with the printing of paper checks. For IOMA’s soon-to-be-published Complete Guide to AP Best Practices 2008, we examined how hundreds of AP departments handle their payments.

Here’s what we’ve identified as the top 10 best practices for check printing:

1. Communicate the schedule. Internal departments—as well as vendors—must be told the cutoff dates for check runs.
2. Use laser checks. These are more secure than blank check stock pre-printed with bank information.
3. Prepare a log. Keep track of check stock by logging in the numbers used (blank security paper can be numbered).
4. Limit the players. Keep the number of people authorized to print checks to a bare minimum.
5. Secure the signature device. The “device” is either a signature plate (lock it in a safe) or a digital signature (protect via password, PIN, and graphic encryption algorithms).
6. Account for voids. If using continuous format checks, write void across the check and tear off the MICR line.
7. Regularly review frequency. Check run frequency depends on many factors—there’s no single best practice. But it should be reviewed at least once every two years. Too many rush checks may mean the need to increase frequency.
8. Secure the finished checks. One checks are printed, they should get to the post office as fast as possible—they shouldn’t sit around the mailroom very long.
9. Investigate outsourcing. Check printing adds little value to AP—it may be better to let the bank do it.
10. Find alternatives. Can that payment be put on a purchasing card? Can we make it electronically? These methods will cut down on paper checks.

Final Point

As with all AP tasks, there should be a “segregation of duties” to thwart fraud. For check printing, one policy should be that no one who can print checks should be reconciling the bank accounts.

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