A Vendor Scrub Report will clean your data files. And that’s an important thing to do—especially at this time of year.
The Chinese belief that cleaning your household of clutter and grime is an important way to start the new year. They believe the cleaning clears away all the bad luck from the previous year. This concept begs the question: With the New Year approaching, do you want to drag all that bad luck on your vendor list into 2016 with you?
If the Chinese tradition isn’t compelling enough to get you to tackle this important task, we have a top ten list of why you need a vendor scrub report:
#10: You will identify duplicate records by name and address.
When it comes to data entry or data conversion, the fact is duplicates happen. A vendor scrub report identifies the duplicates so they can be corrected.
#9: It eases your 1099 reporting.
Whether you clean up your vendor list or not, you are just around the corner from all that 1099 reporting. Wouldn’t it be nice to do it on a cleaned up vendor list?
#8: You could uncover fraudulent activities.
When you clean up your list, you also clean up any companies that aren’t who they say they are. Or who are up to no good—at the expense of your profits.
#7: It verifies all addresses.
It is so easy for multiple addresses on the same vendor to clutter up your file. A vendor scrub highlights the suspects so you can verify where checks and correspondence should really be going.
#6: It can link customer information across multiple data sources.
You get a single, accurate view of your customer information, across the organization.
#5: It standardizes date elements.
Your data is only as good as your data entry. When you standardize your date elements throughout the system, you improve your data.
#4: It gives you an opportunity to leverage your vendor relationships.
When you uncover the hidden relationships buried deep within your vendor records, you can use this information to negotiate more favorable terms from your vendors moving forward.
#3: It reduces the size of your vendor file.
Data can be just like people – leaner runs faster. Who would you like carrying your data, Usain Bolt or Orson Welles?
#2: It can decrease your future overpayments.
And who doesn’t want that?
#1: All this equals efficient
You move faster with a lean, clean, well-organized vendor file.
Good data results in good data analysis. Without good data, you don’t have the benefit of successful Enterprise Resource Planning (ERP) implementations, migrations or a precise spend analysis. Plus, it’s just good business to have ship-shape vendor data—especially when it comes to avoiding duplicate payments and other Accounts Payable errors.
Face it: Your vendor data files are messy and need a good cleaning. But when you think of starting this important but overwhelming task, you start going through your mental to-do list to look for ANYTHING else that’s more important to do. However, there may be few things more important to your bottom line profits and Accounts Payable department efficiency than cleaning up your vendor files with a Vendor Scrub Report—but not many!
Alan Srader is the Director of Audit Development and Corporate Training for AP Recovery, a firm delivering straightforward audits to enhance accounts payable efficiency. With thirty years of experience in Accounts Payable, Alan knows what makes audits work—and what makes them fall apart. Alan approaches his clients with a desire to help and a passion for solving the Account Payable overpayments and recovery of assets puzzle.