Accounts are simple in theory, but all too often extremely complicated in practice. Thanks to that unfortunate but unavoidable fact, your business could be losing surprisingly big amounts of money through duplicate payments and other sorts of accounting glitch. An accounts payable audit can enable you to find these, thereby clawing back money that you have already wasted and preventing the same thing from happening again. You may be under the impression that your company is already as smoothly-run as it needs to be in this area – or perhaps you just think that these sorts of errors are unavoidable, and the price of doing business. However, this is not true, as recovery audit software will prove. The most reasonable estimates suggest that somewhere between 1 in every 1,000 and one in every 200 payments is a duplicate – which means that between you are maybe overpaying between 0.1 percent and 0.5 percent in just those cases. That has a high cost that comes with it.
That’s only one example of accidental overpayments. There are an awful lot of others – not least when dishonest suppliers intend to take advantage of the gaps in your accounting system and end up costing you money through basic fraud. It’s not welcome to consider, but it’s something you should bear in mind: if you haven’t, then there always the chance that someone else has – all with a cost to your company. In this economic climate, no one should be chucking money away like that.
All in all, overpayments are an expensive business. An accounts payable audit of the last few years for a medium-sized business could easily reveal a six-figure discrepancy – money that could have been used to pay staff or invest in hardware or training. Duplicate payments occur because accounts systems often only have relatively basic safeguards in place, and mistakes (and dishonesty) do occur. A typical accounts payment will require a dozen different pieces of information to be entered into the database – plenty of room for human error. recovery audit software can eliminate most of these. In fact, it would be surprising if the software didn’t more than pay for itself the first time it was used. Moreover, it’s worth acting fast. Duplicates and other mistaken payments can be corrected – but only if the supplier involved is still in business. If you wait around for too long, you may find that more and more of them are no longer operating, meaning that you have no chance of reclaiming the lost funds.
Please visit http://www.fiscaltechnologies.com/ for further information about this topic.
http://www.fiscaltechnologies.com/
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