Any small outfit will know that a threat to its cashflow is a threat to the survival of the whole company. Even if you are profitable in the long term, the vagaries of income and outgoings mean that you are at risk. Although it’s possible to put right overpayments, it’s time-consuming and often difficult – and meanwhile, you could be running into major problems. Prevention is always better than cure. An accounts payable audit will show where your vulnerabilities are, and where you have made and are still making duplicate payments and other kinds of overpayment. Recovery audit software will allow you to determine who still owes you cash, for one reason or another, and therefore enable you to set in motion the process for getting it back.
You might assume that overpayments aren’t a problem for your organisation. However, the complexity of modern invoicing means that it’s highly possible that your business – like most others – often pays out money it should not. Some of this is down to errors, honest mistakes that slip past your accounts people and systems because no one knows to look for them. However, fraud can also be a problem. Where there are multiple invoices, it becomes easier to send an extra one dishonestly. Duplicate payments are the most common form of overpayment – hardly surprising, if you hire the same service at the same price every month. It’s easy to pay it twice without realising, either because of a miscommunication within your organisation or fraud from a supplier.
Rough estimates are that around one in every thousand invoices paid is a mistake of one kind or another. If your company relies on large numbers of small transactions to survive, that can mean a lot of wasted revenue. An accounts payable audit is a critical step in stopping those duplicate payments and other overpayments which can erode your profitability. Recovery audit software is often an extremely astute investment, since it will pay for itself the first time you run it. It checks where money is still owing over the last six years, so that you can reclaim it. If appropriate, you may want to take legal action, too. But it’s worth moving fast, because if it falls outside that time period, or if the person or organisation has gone out of business in the meantime, you are unlikely to see it again.
Please visit https://www.fiscaltec.com/ for more details.