Accounts Payable Process Improvement

Industry: Healthcare Services

Scope: Accounts Payable Process Improvement

Background: Due to rapid growth, this publicly-traded healthcare services company needed to identify more streamlined business processes for its Accounts Payable function in order to gain efficiencies to be scaleable in support of future growth, and to enhance its internal control environment.
In addition, the Accounts Payable department was experiencing very high-turnover, and did not have documentation of standard procedures to conduct cross-training and support of newly-hired staff.

CTS Impact Solution:

The CTS Impact team worked side-by-side with this client’s Accounts Payable team to identify and implement process improvements to its current processes.

As a starting point, CTS Impact staff performed day-to-day tasks of the accounts payable function, enabling them to identify and implement process improvements and system automation opportunities on a real-time basis.  This approach also helped ensure the client did not fall behind on its vendor payments, while it searched and hired for new permanent staff.

Using best practices as a benchmark, CTS Impact also benchmarked the client’s current processes compared to peer organizations to determine key operating metrics, target operating model and service levels.

Through its targeted review across all facets of the Accounts Payable process, CTS Impact implemented numerous process improvements including:

  • Elimination of AP backlog
  • Automation of invoice-coding in accounting system (Lawson)
  • Expanded use of EDI
  • New expense reimbursement policy
  • Documented standard operating procedures, including PHI considerations for HIPAA compliance
  • Implemented new cloud-based tool to prepare 1099’s
2017-02-08T23:41:16+00:00