Suppliers and contractors invoices are collected semi-monthly. In order to verify the actual hours and expenses and mitigate any risk of duplicate or short payments. The number of hours and expenses amount was reconciled with the semi-monthly and monthly forecast.
The semi-monthly accruals are input at least 2 months in advance. When the actual time sheet and invoices received, then I will quickly reconcile the numbers and amount.
I also applied the visual management concept. At the beginning of the reconciliation, all the numbers and amounts are highlighted as yellow and fond in red color. If the time sheets and invoices are matched and ready for payroll, the highlighted color of yellow is then removed. After payment is scheduled, fond color is change back to black regular and the cycle is showed as completed.
This process enhances our internal control flow and mitigates the risk of missing payment.
