Duplicate payments can stealthily eat into your company’s profits

Any accounts manager will recognise that things don’t always add up as neatly as they should. It ought to be simple in principle: incomings, outgoings, profit, loss – the columns should balance. When they don’t, you can be nearly certain of the reason why: human error. duplicate payments are easy to make when people are disorganised and don’t keep track of invoices. An accounts payable audit is likely to turn up a number of similar mistakes and issues, highlighting just how dear this can be for a company. Recovery audit software is one way of locating and tracking the discrepancies in your accounts system, gaining back the money you have unnecessarily paid out and stopping the same thing from happening again in the future.

Whilst IT systems are reliable and straightforward, people often don’t work the same way. Duplicate payments can occur when invoices are submitted twice, perhaps mistakenly due to miscommunication, or perhaps because the client has posted it to two different departments in the belief that it will get dealt with more quickly. If clients are disorganised, this can be even worse – you could be dealing with a backlog as they try to get up to date, and be expected to sort out the mess of their own accounting system. Then there are the rarer cases of fraud, where people deliberately try to take advantage of loopholes in your accounts department. Naturally, you will want to be aware of these, since this represents a deliberate and dishonest attempt to siphon money off from your company – rarer than simple error, but by no means unheard of.

Estimates differ about the extent of the fact of duplicate payments and other unnecessary payouts, and clearly it will depend on the scope and size of your firm, as well as how organised and qualified your accounts department is. However, an accounts payable audit on the average business might typically uncover a one percent over-payment – a deceptively small figure which can nevertheless add up to a significant amount of money, especially if a company is very large or perhaps close to the edge to begin with. For a one-off outlay, recovery audit software can avoid such problems occurring again in the future – and help you to recoup any past losses at the same time: a nice bonus that might pay for the investment at a stroke. Put in those terms, there’s no downside to putting that kind of protection in place.

Please visit http://www.fiscaltechnologies.com/ for further information about this topic.