Frequency | 4th Friday of each month |
Participants | PortfolioCo Accountant/Tern Finance |
Tool | Google Sheets |
What payments are covered | All outgoings including:
- HMRC (VAT, PAYE, Corp Tax)
- Pension provider
- Net salaries
- Overheads supplier payments
- COS supplier payments |
Examples | - We should include in the “pay run” approval for the PAYE/NI payment on the 2nd Friday as the 4th Friday might be too late |
Exceptions | Any genuinely urgent vendors that need to be paid immediately |
Standard payment terms | 60 days for new suppliers
Existing suppliers, lets’ discuss |
Banking authorisation | Any payments loaded on the bank should have dual authorisation |
New bank account details | New suppliers OR new bank details from new suppliers - all new bank account details need to verbally verified on the phone or over a recorded Teams/Google Meet call. |
Approval checks | |
Cost / Supplier Invoice Approval checks
- Does the invoice amount ex VAT match with a pre-approved cost or a purchase order? If not, why not?
- Is the pricing based on billable hours or days? If yes:
- Is the time allocate in line with what was agreed prior to contracting? Does it match with a PO?
- Has the work been completed? What is the proof?
- Is the pricing based on SaaS licenses? If yes:
- Do we need this many licenses? Who uses them? Could we simplify the process?
- Is there price increase for the licenses from last year?
- Does the price match what is on the vendor’s website for new customers? If our bill is more expensive, ask the vendor to price-match what is on their website.
- Is there an alternative/cheaper tool that can do the job?
- Is the pricing model based on perpetual licenses? If yes:
- Are there any ‘gotchas’ with perpetual licensing terms i.e. the licensing expires if support falls away?
- Are there any annual prices increases that are built in?
- What is the support & maintenance cost?
- For consultancy services (charged on a day rate), we need pre-approval of the man-day estimate and the exact scope of work to be delivered by the supplier.