Expenses for Days
What is an "Out of Pocket" Expense?
An expense incurred by an employee using their own money.
Multiple Choice: Who pays for the transaction on a company credit card at the time of the purchase?
A - the employee
B - the company
C - the credit card provider
C
Name 3 Accounting Systems that Concur can easily connect to.
Quickbooks, Microsoft Dynamics, Sage (top 3)
SAP, Oracle, Epicor, Blackbaud, NetSuite, etc.
What is a vendor?
Someone that provides you a good or service.
What does AP and AR stand for?
Accounts Payable and Accounts Receivable
True or False: Employees are always reimbursed for an expense report.
False
What is a reason a business may choose to use company cards vs out of pocket expense reports?
Keep rewards, greater visibility, less paper, no approvals
What does ERP stand for?
Enterprise Resource Planning
What are the stages of the CRAPR?
Capture, Route, Approve, Pay, Report
How long does the IRS require companies to hold onto AP Invoices?
Seven years
Describe the difference between an Expense vs an Expense Report.
Expense = Single Charge
Expense Report = Report compiled of 1 or more expenses, submitted for reimbursement or reconciliation
True or False: Employees using company cards do not need to keep track of receipts.
False
Which of these does not belong?
ERP, Financial System, CRM, General Ledger
CRM = Customer Resource Management
What are the 3 methods possible to pay a vendor?
ACH (direct deposit)
Credit Card
Check (or cash)
Define the verb "invoicing".
To send an invoice to (someone)
What is a risk of having a manual expense reporting process?
Lost Receipts, Errors, Out of Compliance, Fraud, Employee Satisfaction, Audit Failure
What does Credit Card Reconciliation mean?
Checking that receipts = credit card statement
Name the 2 accounting systems that Concur can NOT connect to.
CDK and Reynolds & Reynolds (R&R)
What is a PO?
Acronym and description
Purchase Order
A purchase order (PO) is a legally binding document created by a buyer and presented to a seller. Much like your “cart” on an e-commerce site, a purchase order is essentially a list of what you agree to buy, without yet paying for it.
What does "month-end close" mean?
A month-end close is an accounting procedure that ensures all financial transactions have been accounted for in the previous month. To ensure that they are giving accurate data, accountants will have to review, record, and reconcile all account information.
Explain an example of the process of reimbursing an employee for a manual, paper-based, out of pocket expense report. Start - Employee incurs expense. End - Month End Close
Employee uses cash or card for meal purchase, keeps receipt, attaches to expense report, accounting enters into accounting system, passes to approver, gets approved, employee is reimbursed (options), processed during month end close, reporting/visibility given to CFO after month closes.
Describe the manual credit card reconciliation process.
Start - employee incurs expense
End - month-end close
Employee places charge on company card, holds on-to receipt, submits to accounting, accounting receives credit card statement of transactions, matches each transaction to receipt, enters into accounting system, pays credit card company, closes the books, reports sent to CFO.
What type of file does Concur require the ERP to import/export in order to connect?
.CSV
Describe the lifecycle of a PO Invoice
Start - company submits PO to vendor
End - month end close
Company submits PO to vendor for good or service, good or service is provided, vendor sends invoice, AP matches invoice to PO, enters into accounting system, sends to approver, invoice gets approved, invoice gets paid, AP enters payment, closes books after the month, reporting sent to CFO
Get Audit Here! Give 1 of the 3 examples of potential risks an auditor is looking for.
1. No segregation of duties
2. Understatement of invoices/expenses
3. no process for vetting new vendors