- Peeriosity - https://www.peeriosity.com/shared-services/articles -

Why Manual Checks in Local Offices is Still a Bad Idea

The pervasive use of local manual checks for everything from employee recognition awards to urgent vendor payments has been the nemesis of Accounts Payable organizations [1] for decades.  Difficult to control and manage, and costly to administer, the hope was that with the introduction of improved processes and efficient centralized payment systems, the need for local manual checks could be completely eliminated.  Good news!  For many companies, this is exactly what has happened.

Peeriosity’s iPollingTM functionality was recently used by a member who needed accurate and objective feedback from their peers regarding the use of manual checks in local offices.  In the words of the member: “Somewhat contrary to our company’s overall Shared Services objectives (consolidation, efficiencies, and controls), we are considering having checkbooks in some of our local offices, including internationally. This will allow local leaders to issue checks manually outside the primary Accounts Payable system. We would like input from other major corporations that have evaluated this approach and have either implemented it or decided against doing so. “

This Peeriosity member used iPollingTM to draft two questions that examined this issue.  Responses were posted in real-time, with visibility to company responses available to all Peeriosity members, allowing for direct communication with peers using Peeriosity’s integrated Peer MailTM capabilities.

The first question asked about the current status of allowing local offices to issue checks manually outside of the primary Accounts Payable [2] system.  In 84% of the companies, the idea was either never considered (28%) or evaluated and denied (56%).  Of the remaining 16% of responding companies, 8% are currently evaluating, 4% report that, while they have implemented, they are not satisfied with the current process and controls, with the remaining 4% indicating that they are satisfied with their implementation. 

iPolling: status of allowing local offices to issue checks manually | Manual Checks

The second question asked how companies address the need to make urgent payments locally.  Interestingly, at 81% of responding companies some combination of Purchasing Cards [3] issued to local leaders and the overnight delivery of paper checks to a local office was effective at eliminating to need for manual checks.  Here are the details:

iPolling: how company address the urgent need to pay small or one time vendors | Manual Checks

Unlike traditional benchmarking, Peeriosity’s iPollingTM capabilities allowed members to examine this issue in detail very quickly, providing a range of experiences and viewpoints that could be reviewed to develop an appropriate and workable answer.  Tapping into the experience of peers eliminates the guesswork and allows members to quickly access the collective experiences of a large community of users who are facing the same challenges.

Here are some of the comments from responding companies:

What approach does your company take to address the need for manual checks in local offices? Are you using Purchasing Cards, overnight delivery of checks, or some other option to address this business need?

Who are your peers and how are you collaborating with them?

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 “iPollingTM” is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. Using Peeriosity’s integrated e-mail system, Peer MailTM, members can easily communicate at any time with others who participate in iPolling.

Peeriosity members are invited to log into www.peeriosity.com [5] to join the discussion and connect with Peers.   Membership is for practitioners only, with no consultants or vendors permitted.  To learn more about Peeriosity, click here [6].