ACCOUNTING BEST PRACTICES
Seventh Edition
Today's accounting staffs are called on to work magic: process transactions, write reports, improve efficiency, create new processesall at the lowest possible cost, using an ever-shrinking proportion of total corporate expenses. Sound impossible? Not if your staff is using the best practices for accounting.
Fully updated in a new edition, Accounting Best Practices, Seventh Edition draws from renowned accounting leader Steven Bragg's extensive experience in successfully developing, operating, and consulting various accounting departments. This invaluable resource has the at-your-fingertips information you need, whether you've been searching for ways to cut costs in your accounting department, or just want to offer more services without the added expense.
The best practices featured in this excellent step-by-step manual constitute need-to-know information concerning the most advanced techniques and strategies for increasing productivity, reducing costs, and monitoring existing accounting systems. This new edition boasts over 400 best practices, with fifty new to this edition in the areas of taxation, finance, collections, general ledger, accounts payable, and billing.
Now featuring a corresponding seven-minute podcast for each chapter found on the book's companion website, Accounting Best Practices is the perfect, do-it-yourself book for the manager who wants to significantly boost their accounting department.
Table of Contents
Preface xix
Chapter 1 Overview of Best Practices 1
Chapter 2 How to Use Best Practices 5
Types of Best Practices 5
The Most Fertile Ground for Best Practices 6
Planning for Best Practices 7
Timing of Best Practices 9
Implementing Best Practices 10
Best Practice Duplication 12
Why Best Practices Fail 13
The Impact of Best Practices on Employees 17
Summary 18
Chapter 3 Accounts Payable Best Practices 19
Implementation Issues for Accounts Payable Best Practices 20
3–1 Pay Based on Receiving Approval Only 20
3–2 Reduce Required Approvals 25
3–3 Use Negative Assurance for Invoice Approvals 26
3–4 Designate Approval Stamp Positioning 26
3–5 Base Approvals on Supplier Invoicing History 27
3–6 Use Procurement Cards 27
3–7 Use a Ghost Card 32
3–8 Negotiate Procurement Card Rebates 32
3–9 Route All Invoices Directly to Accounts Payable 33
3–10 Split Payables Processing Based on Discounts 33
3–11 Adopt a Standard Invoice Numbering Convention 34
3–12 Automate Three-Way Matching 35
3–13 Digitize Accounts Payable Documents 36
3–14 Directly Enter Receipts into Computer 38
3–15 Have Suppliers Include Their Supplier Number on Invoices 39
3–16 Request that Suppliers Enter Invoices through a Web Site 39
3–17 Audit Expense Reports 40
3–18 Automate Expense Reporting 42
3–19 Eliminate Cash Advances for Employee Travel 44
3–20 Link Corporate Travel Policies to an Automated Expense Reporting System 45
3–21 Match Travel Bookings to Expenses 46
3–22 Centralize the Accounts Payable Function 46
3–23 Store Late Fees in a Separate General Ledger Account 48
3–24 Issue Standard Account Code List 48
3–25 Link Supplier Requests to the Accounts Payable Database 49
3–26 Shrink the Supplier Base 50
3–27 Withhold First Payment until W-9 Form Is Received 51
3–28 Automate Payments for Repetitive Invoicing 52
3–29 Install a Payment Factory 52
3–30 Eliminate Manual Checks 53
3–31 Eliminate Wire Transfers 54
3–32 Increase the Frequency of Check Runs 55
3–33 Settle Foreign Intercompany Payables 55
3–34 Have Regularly Scheduled Check-Signing Meetings 56
3–35 Implement Positive Pay 56
3–36 Incorporate Copy Protection Features into Checks 57
3–37 Avoid Acronym Payees on Checks 59
3–38 Revise Payment Terms for Electronic Payments 59
3–39 Install Advanced ACH Debit Blocking 60
3–40 Use a Signature Stamp 60
3–41 Notify Purchasing of Lower Invoiced Prices or Terms 61
3–42 Create Direct Purchase Interfaces to Suppliers 62
3–43 Install a Low-Cost Spend Management System 63
3–44 Use Blanket Purchase Orders 64
3–45 Issue a Welcome Packet to New Suppliers 65
3–46 Clean Up the Supplier Master File 66
3–47 Adopt a Supplier Naming Procedure 67
3–48 Assign Payables Staff to Specific Suppliers 68
3–49 Create Different Supplier Accounts for Different Terms 68
3–50 Review Supplier Statements for Open Credits 69
3–51 Issue Standard Adjustment Letters to Suppliers 69
Summary 69
Chapter 4 Billing Best Practices 71
Implementation Issues for Billing Best Practices 71
4–1 Avoid Missed Billings 73
4–2 Remove Unnecessary Information from Invoices 74
4–3 Mark Envelopes with Address Correction Requested 75
4–4 Do Early Billing of Recurring Invoices 75
4–5 Have the Sales Staff Review Contact Information for Recurring Invoices 76
4–6 Review Billed Hours Early 76
4–7 Issue Electronic Invoices 77
4–8 Issue Single, Summarized Invoices Each Period 78
4–9 Print Separate Invoices for Each Line Item 79
4–10 Enhance the Invoice Layout 80
4–11 Add Receipt Signature to Invoice 81
4–12 Automatically Check Errors during Invoice Data Entry 81
4–13 Proofread Invoices 82
4–14 Have Delivery Person Create the Invoice 83
4–15 Computerize the Shipping Log 85
4–16 Track Exceptions between the Shipping Log and the Invoice Register 86
4–17 Eliminate Month-End Statements 87
4–18 Reduce Number of Parts in Multipart Invoices 87
Summary 88
Chapter 5 Budgeting Best Practices 91
Implementation Issues for Budgeting Best Practices 91
5–1 Link the Budget to Key Business Drivers 93
5–2 Clearly Define All Assumptions 93
5–3 Clearly Define All Capacity Levels 94
5–4 Establish Project Ranking Criteria 95
5–5 Apply Throughput Analysis to Capital Budgeting 96
5–6 Establish the Upper Limit of Available Funding 97
5–7 Identify Step-Costing Change Points 98
5–8 Budget for Attrition 99
5–9 Budget by Groups of Staff Positions 99
5–10 Create a Summarized Budget Model for Use by Upper Management 100
5–11 Include a Working Capital Analysis 101
5–12 Use Activity-Based Budgeting 102
5–13 Incorporate Target Costing into the Budgeting Process 103
5–14 Link a Bonus Sliding Scale to the Budget 103
5–15 Use Flex Budgeting 104
5–16 Incorporate Risk Analysis into Budget Modeling 105
5–17 Automatically Link the Budget to Purchase Orders 105
5–18 Issue a Budget Procedure and Timetable 106
5–19 Preload Budget Line Items 108
5–20 Adopt Two-Stage Capital Budgeting 109
5–21 Purchase Budgeting and Planning Software 110
5–22 Reduce the Number of Accounts 111
5–23 Revise Budgets on a Quarterly Basis 111
5–24 Simplify the Budget Model 112
5–25 Use Online Budget Updating 113
5–26 Operate without a Budget 115
Summary 116
Chapter 6 Cash Management Best Practices 117
Implementation Issues for Cash Management Best Practices 117
6–1 Access Bank Account Information on the Internet 118
6–2 Automatically Apply Cash 120
6–3 Avoid Delays in Check Posting 121
6–4 Require Mailings to Mailstop Number 122
6–5 Collect Receivables through Lockboxes 122
6–6 Install Remote Deposit Capture 124
6–7 Consolidate Bank Accounts 125
6–8 Implement Physical Cash Sweeping 126
6–9 Implement Notional Pooling 128
6–10 Charge Back Treasury Fees to Subsidiaries 129
6–11 Implement Controlled Disbursements 130
6–12 Negotiate Faster Deposited-Check Availability 131
6–13 Open Zero-Balance Accounts 131
Summary 132
Chapter 7 Collections Best Practices 135
Implementation Issues for Collections Best Practices 135
7–1 Accept Check Payments by Fax 137
7–2 Clearly Define Account Ownership 138
7–3 Optimize the Collections Staff 139
7–4 Designate a Skip Tracing Specialist 140
7–5 Utilize Collection Call Stratification 141
7–6 Structure the Workday Around Prime Calling Hours 142
7–7 Base Deduction Management on Transaction Volume 143
7–8 Set Up a Periodic Payment Schedule 144
7–9 Require Customer Billing of Marketing Deductions 144
7–10 Grant Percentage Discounts for Early Payment 145
7–11 Conduct Immediate Review of Unapplied Cash 146
7–12 Outsource Collections 147
7–13 Prepare a Customer Bankruptcy Action Plan 148
7–14 Sell Your Bankruptcy Creditor Claim 149
7–15 Simplify Pricing Structure 151
7–16 Write Off Small Balances with No Approval 152
7–17 Report on Bad Debts by Salesperson 152
7–18 Post Collection Results by Collector 153
7–19 Create an Accurate Bad-Debt Forecast 153
7–20 Use Automated Clearing House Debits 154
7–21 Lock Access to the Credit-Hold Flag 155
7–22 Maintain Customer Orders Database 156
7–23 Subscribe to Special Event Notifications 156
7–24 Set Up Automatic Fax of Overdue Invoices 157
7–25 Issue Dunning Letters Automatically 158
7–26 Automate E-Mail Delivery of Overdue Invoice Information 160
7–27 Use a Collection Call Database 160
7–28 Access Up-to-Date Collection Agency Information 162
7–29 Implement Customer Order Exception Tracking System 163
7–30 Install a Dispute Tracking System 164
7–31 Report on Ongoing Customer Complaints 165
7–32 Link to Comprehensive Collections Software Package 166
7–33 Use Real-Time Cash Application Techniques 167
Summary 168
Chapter 8 Credit Best Practices 169
Implementation Issues for Credit Best Practices 169
8–1 Create a Credit Policy 171
8–2 Modify the Credit Policy Based on Product Margins 172
8–3 Modify the Credit Policy Based on Changing Economic Conditions 173
8–4 Modify the Credit Policy Based on Potential Product Obsolescence 173
8–5 Centralize Credit Risk Analysis 174
8–6 Preapprove Customer Credit 174
8–7 Subscribe to a Credit Report Database 175
8–8 Create an Internal Credit Scoring System 176
8–9 Modify Credit Application Terms to Favor the Company 178
8–10 Create a Credit Application Guidebook 179
8–11 Create a Standardized Credit-Level Determination System 180
8–12 Incorporate Collections Information into Credit Decisions 181
8–13 Require a New Credit Application if Customers Have Not Ordered in Some Time 182
8–14 Review the Credit Levels of All Customers Who Stop Taking Cash Discounts 182
8–15 Call New Customers and Explain Credit Terms 183
8–16 Issue a Payment Procedure to Customers 183
8–17 Join an Industry Credit Group 184
8–18 Refer a Potential Customer to a Distributor 185
8–19 Require Intercorporate Guarantees 185
8–20 Obtain Check Verification and Guarantee Coverage 185
8–21 Obtain Credit Insurance 186
8–22 Obtain an Export Credit Guarantee 187
8–23 Shorten the Terms of Sale 188
8–24 Insist on Lien Rights 189
8–25 Offer a Financing Program 189
8–26 Combine COD Terms with a Surcharge 190
Summary 190
Chapter 9 Commissions Best Practices 191
Implementation Issues for Commissions Best Practices 191
9–1 Automatically Calculate Commissions in the Computer System 192
9–2 Calculate Final Commissions from Actual Data 193
9–3 Construct a Standard Commission Terms Table 194
9–4 Periodically Issue a Summary of Commission Rates 195
9–5 Simplify the Commission Structure 195
9–6 Include Commission Payments in Payroll Payments 196
9–7 Lengthen the Interval between Commission Payments 197
9–8 Pay Commissions Only from Cash Received 197
9–9 Increase Commissions for Cash in Advance Payments 198
9–10 Periodically Audit Commissions Paid 199
9–11 Install Incentive Compensation Management Software 199
9–12 Post Commission Payments on the Company Intranet 200
9–13 Show Potential Commissions on Cash Register 201
Summary 202
Chapter 10 Costing Best Practices 203
Implementation Issues for Costing Best Practices 203
10–1 Audit Bills of Material 205
10–2 Audit Labor Routings 206
10–3 Eliminate High-Leverage Overhead Allocation Bases 207
10–4 Simplify Overhead Allocations 208
10–5 Assign Overhead Personnel to Specific Subplants 208
10–6 Use Perfect Standards for Material Variance Reporting 209
10–7 Eliminate Labor Variance Reporting 209
10–8 Follow a Schedule of Inventory Obsolescence Reviews 211
10–9 Eliminate the Tracking of Work-in-Process Inventory 212
10–10 Implement Activity-Based Costing 213
10–11 Implement Throughput Accounting 214
10–12 Implement Target Costing 215
10–13 Track Excess Capacity 216
10–14 Limit Access to Unit of Measure Changes 216
10–15 Report on Landed Cost Instead of Supplier Price 217
10–16 Report on Total Customer Price 218
10–17 Review Cost Trends 218
10–18 Review Material Scrap Levels 220
10–19 Revise Traditional Cost Accounting Reports 221
Summary 223
Chapter 11 Filing Best Practices 225
Implementation Issues for Filing Best Practices 225
11–1 Improve the Mailroom Interface 226
11–2 Reduce Keystroke Errors 227
11–3 Use Multiple OCR Engines for Data Capture 228
11–4 Add Digital Signatures to Electronic Documents 228
11–5 Archive Computer Files 230
11–6 Implement Document Imaging 230
11–7 Eliminate Stored Paper Documents if Already in Computer 232
11–8 Extend Time Period before Computer Records Are Purged 233
11–9 Extend Use of Existing Computer Database 234
11–10 Improve Computer System Reliability 236
11–11 Adopt a Document-Destruction Policy 238
11–12 Eliminate Attaching Back-up Materials to Checks for Signing 241
11–13 Eliminate Reports 241
11–14 Move Records Off-Site 243
11–15 Reduce Number of Form Copies to File 244
11–16 Use Carts for Portable File Storage 244
Summary 245
Chapter 12 Finance Best Practices 247
Implementation Issues for Finance Best Practices 247
12–1 Use an Investment Strategy for Short-Term Investments 249
12–2 Use Invoice Discounting 251
12–3 Sell Securities under the Regulation A Exemption 251
12–4 Sell Securities under the Regulation D Exemption 253
12–5 Set Up Supply Chain Financing 254
12–6 Obtain Cash through Crowdfunding 255
12–7 Join a Barter Network 256
12–8 Automate Option Tracking 256
12–9 Automate 401(k) Plan Enrollment 257
12–10 Grant Employees Immediate 401(k) Eligibility 258
12–11 Consolidate Insurance Policies 258
12–12 Obtain Advance Rating Assessments 259
12–13 Rent a Captive Insurance Company 259
12–14 Use Netting to Reduce Foreign Exchange Settlements 260
12–15 Install a Treasury Workstation 261
12–16 Connect to the SWIFT Network 263
12–17 Optimize the Organization of Treasury Operations 264
12–18 Hedge Foreign Exchange with Forward Exchange Contracts 265
12–19 Hedge Foreign Exchange with Currency Futures 266
12–20 Lock in Interest Rates with an Interest Rate Swap 267
Summary 269
Chapter 13 Financial Statements Best Practices 271
Implementation Issues for Financial Statements Best Practices 272
13–1 Move Operating Data to Other Reports 272
13–2 Restrict the Level of Reporting 274
13–3 Write Financial Statement Footnotes in Advance 275
13–4 Create a Disclosure Committee 275
13–5 Automate Recurring Journal Entries 276
13–6 Automate the Cutoff 277
13–7 Avoid the Bank Reconciliation 278
13–8 Defer Routine Work 279
13–9 Eliminate Multiple Approvals 279
13–10 Eliminate Small Accruals 281
13–11 Reduce Investigation Levels 282
13–12 Assign Closing Responsibilities 282
13–13 Compress Billing Activities 283
13–14 Conduct Transaction Training 284
13–15 Continually Review Wait Times 285
13–16 Convert Serial Activities to Parallel Ones 286
13–17 Create a Closing Schedule 287
13–18 Document the Process 289
13–19 Restrict the Use of Journal Entries 290
13–20 Train the Staff in Closing Procedures 291
13–21 Use Cycle Counting to Avoid Month-End Counts 292
13–22 Compress Public Company Closing Activities 293
13–23 Use Standard Journal Entry Forms 294
13–24 Complete Allocation Bases in Advance 295
13–25 Reconcile Intercompany Transactions in Advance 296
13–26 Conduct Daily Review of the Financial Statements 297
Summary 297
Chapter 14 General Best Practices 299
Implementation Issues for General Best Practices 299
14–1 Apply Run Charts to Accounting Processes 301
14–2 Apply Check Sheets to Accounting Processes 303
14–3 Apply Value Stream Mapping to Accounting Processes 304
14–4 Apply the Production Cell Layout to Accounting 305
14–5 Create a Best Practices Support Center 306
14–6 Consolidate All Accounting Functions 307
14–7 Continually Review Key Process Cycles 308
14–8 Create a Policies and Procedures Manual 310
14–9 Eliminate All Transaction Backlogs 314
14–10 Implement Process-Centering 314
14–11 Remove Clutter from the Accounting Workspace 315
14–12 Issue Activity Calendars to All Accounting Positions 316
14–13 Switch to Online Reporting 317
14–14 Track Function Measurements 318
14–15 Discuss Major Accounting Decisions with Auditors 319
14–16 Create a Contract Terms Database 319
14–17 Install a Knowledge Management System 323
14–18 Monitor Fixed Assets with Wireless Sensors 323
14–19 Create an Online Tax Policy Listing 324
14–20 Designate a Tax Liaison for Each Government Jurisdiction 325
14–21 Assign Tax Staff to Business Units 325
14–22 Outsource Tax Form Preparation 326
14–23 Submit Electronic Tax Returns to the IRS 326
14–24 Pay Federal Taxes Online 327
14–25 Create Accounting Training Teams 328
14–26 Create an Ongoing Training Program for All Accounting Personnel 329
14–27 Implement Cross-Training for Mission-Critical Activities 332
Summary 333
Chapter 15 General Ledger Best Practices 335
Implementation Issues for General Ledger Best Practices 335
15–1 Eliminate Small-Balance Accounts 337
15–2 Modify Account Code Structure for Storage of ABC Information 337
15–3 Create Alphanumeric Department/Subsidiary Codes 338
15–4 Reduce the Chart of Accounts 339
15–5 Use Identical Chart of Accounts for Subsidiaries 340
15–6 Require Senior Approval to Add Accounts 343
15–7 Use Data Warehouse for Report Distribution 343
15–8 Use Forms/Rates Data Warehouse for Automated Tax Filings 344
15–9 Use the General Ledger as a Data Warehouse 345
15–10 Restrict Use of Journal Entries 346
15–11 Avoid General Ledger Posting Bottlenecks 347
15–12 Have Subsidiaries Update Their Own Data in the Central General Ledger 348
15–13 Prescreen Construction-in-Progress Entries 349
Summary 349
Chapter 16 Internal Auditing Best Practices 351
Implementation Issues for Internal Auditing Best Practices 351
16–1 Annually Update an Internal Control Assessment of Each Business Unit 353
16–2 Issue Self-Audit Guides to Business Units 354
16–3 Recommend Business Process Improvements to Business Units 354
16–4 Track Audit Results through Business Unit Surveys 355
16–5 Train Business Unit Staff on Control Issues 356
16–6 Train New Business Unit Managers on Control Issues 356
16–7 Avoid Over auditing of Internal Audits 357
16–8 Complete All Internal Audit Work Papers in the Field 358
16–9 Create a Control Standards Manual 358
16–10 Create an Online Internal Audit Library 359
16–11 Create and Disseminate Information from a Best Practices Database 359
16–12 Outsource the Internal Audit Function 360
16–13 Schedule Some Internal Audits on a Just-in-Time Basis 361
16–14 Schedule Internal Audits Based on Risk 361
16–15 Use Workflow Software for Internal Audits 362
16–16 Implement Continuous Controls Monitoring 363
16–17 Fill Internal Audit Positions from Operations on a Rotating Basis 364
16–18 Add Specialists to Audit Teams 364
16–19 Assign an Auditor to Be a Relationship Manager with Each Business Unit 365
16–20 Assign Internal Auditors to System Development Teams 366
16–21 Create an Auditor Skills Matrix 366
16–22 Use Excel for Continuous Auditing 367
16–23 Support the Outside Auditors 368
Summary 368
Chapter 17 Inventory Best Practices 369
Implementation Issues for Inventory Best Practices 369
17–1 Audit Bills of Material 372
17–2 Conduct a Configuration Audit 373
17–3 Modify the Bills of Material Based on Actual Scrap Levels 374
17–4 Review Inventory Returned to the Warehouse 374
17–5 Modify the Bills of Material for Temporary Substitutions 375
17–6 Use Bills of Material to Find Inventory Made Obsolete by Product Withdrawals 376
17–7 Compare Open Purchase Orders to Current Requirements 377
17–8 Reject Unplanned Receipts 377
17–9 Obtain Advance Shipping Notices for Inbound Deliveries 378
17–10 Eliminate the Receiving Function 379
17–11 Use Standard Containers to Move, Store, and Count Inventory 380
17–12 Use Different Storage Systems Based on Cubic Transactional Volume 381
17–13 Organize the Warehouse by Storage Zones 381
17–14 Optimize Inventory Storage through Periodic Location Changes 382
17–15 Maximize Vertical Storage Space 382
17–16 Use Narrow Aisles in Manual Putaway and Picking Zones 383
17–17 Eliminate the Warehouse 384
17–18 Audit All Inventory Transactions 385
17–19 Compare Recorded Inventory Activity to On-Hand Inventories 386
17–20 Eliminate the Physical Count Process 387
17–21 Cycle-Count Based on Usage Frequency 389
17–22 Lock Down the Warehouse Area 389
17–23 Move Inventory to Floor Stock 390
17–24 Segregate Customer-Owned Inventory 391
17–25 Streamline the Physical Count Process 392
17–26 Track Inventory Accuracy 394
17–27 Train the Warehouse and Accounting Staffs in Inventory Procedures 395
17–28 Initiate Warehouse Staff Self-Auditing 396
17–29 Verify That All Receipts Are Entered in the Computer at Once 396
17–30 Record Inventory Transactions with Bar Codes 397
17–31 Record Inventory Transactions with Radio Frequency Communications 398
17–32 Track Inventory with Radio Frequency Identification (RFID) 399
17–33 Eliminate All Paper from Inventory Transactions 400
17–34 Install a Kanban System 401
17–35 Eliminate All Transaction Backlogs 402
17–36 Immediately Review All Negative Inventory Balances 403
17–37 Reduce the Number of Products 403
17–38 Reduce the Number of Product Options 404
17–39 Design Products with Lower Tolerances 404
17–40 Obtain Direct Links into Customer Inventory Planning Systems 405
17–41 Adopt Just-in-Time Purchasing 406
17–42 Shift Raw Materials Ownership to Suppliers 407
17–43 Drop Ship Inventory 408
17–44 Reduce Safety Stocks by Accelerating the Flow of Internal Information 408
17–45 Reduce Safety Stock by Shrinking Supplier Lead Times 409
17–46 Reduce Safety Stock with Risk Pooling 410
17–47 Use Variable Safety Stocks for Fluctuating Demand 410
17–48 Cross-Dock Inventory 411
17–49 Use Overnight Delivery from a Single Location for Selected Items 412
17–50 Focus Inventory Reduction Efforts on High-Usage Items 412
17–51 Eliminate Redundant Part Numbers 413
17–52 Standardize Parts 414
17–53 Identify Inactive Inventory in the Product Master File 415
Summary 415
Chapter 18 Payroll Best Practices 417
Implementation Issues for Payroll Best Practices 418
18–1 Disallow Prepayments 420
18–2 Create Employee Self-Service for Payroll Changes 421
18–3 Minimize Payroll Deductions 422
18–4 Prohibit Deductions for Employee Purchases 423
18–5 Post Forms on an Intranet Site 423
18–6 Avoid Job Costing through the Payroll System 424
18–7 Use Computerized Time Clocks 425
18–8 Use Exception Time Reporting 426
18–9 Install Automated Timesheet Reminders 427
18–10 Reduce the Number of Pay Codes 427
18–11 Use Biometric Time Clocks 428
18–12 Track Time with Mobile Phones 428
18–13 Install Additional Time Clocks 429
18–14 Issue Electronic W-2 Forms to Employees 429
18–15 Transfer Payroll to Debit Cards 430
18–16 Use Direct Deposit 432
18–17 Automate Vacation Accruals 434
18–18 Consolidate Payroll Systems 434
18–19 Create a Payroll Call Center for Employees 435
18–20 Eliminate Personal Leave Days 437
18–21 Link Payroll Changes to Employee Events 437
18–22 Install Manager Self-Service 438
18–23 Link the 401(k) Plan to the Payroll System 440
18–24 Link the Payroll and Human Resources Databases 440
18–25 Minimize Payroll Cycles 441
18–26 Minimize Off-Cycle Payrolls 442
18–27 Create a Year-End Payroll Processing Checklist 443
18–28 Electronically Verify Employee I-9 Information 444
18–29 Reduce Taxes with the Common Paymaster Rule 445
18–30 Outsource the Payroll Function 445
18–31 Post FAQ Answers and Issue a Payroll Orientation Brochure 447
Summary 448
Appendix: Summary of Best Practices 449
About the Author 465
Index 467
