Centralization and outsourcing of accounts payable functions

• Main Author: Balicol, Maryjane S.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Records > Management; Corporations > Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5683
• Institution: De La Salle University

ABC Motors is an automotive dealership with five branches in Metro Manila. The company was beset with the delayed or untimely recording and payment of its accounts payable. The problem has threatened the company's long-term relationships with business partners. Unnecessary costs were incurred due to penalties brought by delayed payments. To address the problem, this integrated action research aimed for timely recording and payment of accounts payable by implementing several interventions. In Cycle 1 of this action research, the intervention is the centralization of all accounts payable functions to the Head Office. In Cycle 2, the intervention is the outsourcing of the check writing and check releasing functions to a third party. The results enabled the company to efficiently process its accounts payable.