Streamlining the disbursement process in finance department
The finance function should manage the revenue and expenditure cycle efficiently to yield a favorable bottom line. Thus, accounts payable play a vital role in the company's business operations as this is the last control point in the expenditure cycle. This integration action research paper add...
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2022
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etdm_manorg/147 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | The finance function should manage the revenue and expenditure cycle efficiently to yield a favorable bottom line. Thus, accounts payable play a vital role in the company's business operations as this is the last control point in the expenditure cycle.
This integration action research paper addressed the importance of a streamlined disbursement process in the finance department. This study aims to yield an efficient and effective process flow to manage delayed payments to suppliers. It seeks to enhance the existing process guidelines and utilize the existing web-based collaborative platform to position the entity in a competitive advantage, especially now that a hybrid workforce is the new normal.
Through inquiries, Root Cause Analysis, and Force field Analysis, we identified issues and possible gaps that could be addressed to increase efficiency and business agility. This action research applies the change management framework by Kurt Lewin and the action research tools to guide the intervention. In addition, RACI Matrix was used to revisit the responsibility assignment of the team. Moreover, the Agile Methodology and Theory of Constraints serve as the primary frameworks that help us complete the entire action research.
The outcome of the intervention helps the AP team work effectively and efficiently. The processing time in making payments has been reduced using a web-based collaborative platform as a repository of suppliers' manual invoices. Secondly, the created disbursement process flow, along with the RACI matrix, complements the process improvements. Although the process has improved, constraints remain that could be further developed to achieve continuous improvement.
Keywords: Agile Methodology, Theory of Constraints, RACI Matrix, Accounts Payable, Disbursement Process, Accounts Payable Automation, Power Industry |
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