Accounts payable audit are necessary for any business which suspects it may be at risk of making duplicate payments, invoice payment mistakes or other financial hiccups – which can have a far-reaching and long-lasting effect on a company with a complicated accounts payable department. If a business is paying many different contractors and service providers, in can be easy to lose track of just how accurate its payments are. In the case of a company coping with out-of-date or ineffective systems, these payments can spiral until they represent significant losses.
That’s why most accounts payable departments commonly use a recovery audit, to see just where they’re misplacing money. However, recovery audits can be expensive in themselves, and cumbersome, if the appropriate technologies are not in place. Increasingly, accounts payable audit are at their most effective when paired with recovery audit software that automatically sees flaws in accounting and invoicing systems. This includes the spotting of inaccurate or duplicate payments, overpayments, missed discounts, currency conversion errors, unclaimed cheques, incorrect tax adjustments and even attempted fraud.
Due to the expense and intricacy of good-quality recovery audit software, most firms use services that provide them with built-in tools. Because these tools are the main function of an accounts payable software company, rather than a sideline, the company can invest a lot more in keeping them up to date and at maximum capability – basically, hundreds of clients will share the cost of one software system, and have the hassle taken off their backs.
Generally, recovery audit software is operated online, with clients able to check in on the process and see results in an accessible format whenever they want to. No more waiting for office staff to come up with reports or worrying about what they might have forgotten – the software is kept backed up and up to date by the company supplying and operating the software. Much of this software includes prevention tools that make recovery audit a constant process, rather than a regular labourious task: and make sure that errors, frauds and overpayments are stopped at once. For some large companies, this represents a saving of millions of dollars, even before they factor in the staff time and office resources that have been freed up by relying on a software system. Many systems will even automate historical claims to debtors or contractors, so that the lost revenue is back in the company’s account as fast as possible.
In the realm of accounts payable audit, this software can be a transformative tool. Human error is all but eliminated, and employees can breathe easily, knowing that they’re not throwing away money through mistakes that get lost in the net.