How to Clean Up Your Vendor Master File
If you have a vendor master file, it’s essential that you clean it up on a regular basis. By doing so, you can reduce the risk of inaccurate, outdated, and duplicate records that may cost you a great deal of money. Clean ups can also help your accounts payable team find non-compliance and fraud. Here are some tips to help you clean up your vendor master file effectively and efficiently.
Get Rid of Duplicate Vendor Entries
The reality is that most double payments come from duplicate vendor entries and coding errors. To avoid paying the same vendor twice for the same service, make an effort to find these errors in advance. You’ll find that being proactive and preventing mistakes is far easier and more affordable than trying to get your money back.
Archive Inactive Vendors
There’s a good chance you don’t work with every vendor in your master file. If you haven’t done business with a specific vendor in a while, remove them. Be sure to archive their information so that you can add them back if necessary. The less vendors you have, the easier and faster it’ll be to access your master file.
Fill in Missing Data
Make sure every file is accurate and complete. If you notice missing information about a vendor, fill it in. While a name and address is okay, you may want to go the extra mile and add contact names, phone numbers, email addresses, and website links. This way you’ll have all the information you could possibly want about a vendor in one convenient place.
Consider a Self-Service Vendor Portal
A self-service vendor portal can be invaluable for your business as it may reduce the number of calls and emails you receive about payment status. Not only can a portal free up the schedules of your accounts payable employees, it makes it easy for vendors to update their information, improving accuracy and reducing missing data concerns.
With an automated accounts payable solution, you can standardize your vendor setup process. This will likely lead to less duplicate payments and greater money savings. It can also significantly reduce your risk of fraud.
Opt for Technology Insight’s 5-Step Cleanse
At Technology Insight, we offer a unique 5-step cleanse program. It involves deactivating unused vendors as well as those you haven’t used for over 48 or 36 or 18 months and duplicates. We also analyze remaining vendors for missing data and match taxpayer identification numbers.
Our end goal is to ensure that 65% of the vendors available in the active system are of active usage in the past 12 months. For more information, request your free assessment today.