Every big company with significant numbers of clients and employees will know that accounts can be complex and problematic. That’s why an accounts payable audit is necessary at least once a year. Such an audit will enable you to pinpoint any errors in your accounting processes, one of the most common – and costly – of which will be duplicate payments. These can be easy to make, often through simple human error. However, they can also be tricky to detect and address, and the longer the situation has been left, the harder it can be to rectify. Recovery audit software can make the process easier by automating it, leaving your staff to do what they do best.
One survey found that the impact of duplicate payments alone accounted for between 0.1 and 0.5 percent of company spending – not profit, spending, since these figures are about what is going out of your accounts. A company spending £50 million could easily expect to be losing £50,000, and very probably much more. And that’s just one type of overpayment. It’s likely that one in every thousand payments for your company is a duplicate. That all stacks up, and yet you may not notice it until a supplier lets you know – assuming they notice themselves, or want to tell you. And, of course, once a supplier goes out of business – not a rare thing in this economic climate – any chance of retrieving that overpayment goes out of the window.
Some businesses hire recovery auditors to do similar work for them. Whilst valuable in tracking down problems, these individuals charge expensive fees. It also places control for your accounts auditing outside your own company, rather than within your accounts department – surely a second best solution. Acquiring the right software can empower your own staff to find errors before they occur, and while there is still a good chance of fixing them.
These tend to be perennial and often costly problems. Recovery audit software can almost entirely eliminate the problems of duplicate payments, other overpayments and further accounting errors, from the simple human error side of things to the more subtle and sinister side of supplier fraud. It makes the yearly (if that) accounts payable audit process painless and easy, giving the initiative back to your own company rather than outside agencies.
Please visit http://www.fiscaltechnologies.com/ for further information about this topic.
http://www.fiscaltechnologies.com/
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