Accounts payable audit software is designed to defend large companies against the significant losses that occur due to a variety of shortcomings in the companies’ finance management systems. Accounts payable teams can use it to highlight invoicing errors, duplicate payments, supplier fraud and compliance issues, potentially saving in excess of a hundred thousand pounds per annum, depending on the size of the company. Recovering duplicate payments can be a pricey business, and recovery auditors will charge up to 50 per cent of the duplicate payments that they recover for you. An alternative to this arrangement is to use recovery audit software, which not only drastically reduces the cost of these commissions, but also diminishes the chances of duplicate payments reoccurring in the future.
Without a effective accounts payable audit solution, duplicate payments are likely to continue to occur as a result of several causes. The most typical of these is human error; because of the sheer volume of transactions involved, this is inescapable without accounts payable or recovery audit software. Any simple slip-up can result in a very large overpayment. For instance, if a supplier inquires into the status of a payment while it is temporarily held up in the approval status, accounts payable staff may be unable to find the payment, and will conclude that it has not been paid, so the supplier will send a new invoice. In this case, the new payment will be made and the original payment will eventually appear and be paid automatically.
Authorisation processes can be time-consuming and inefficient. System changes that occur as a result of mergers, takeovers or system renovations, or the use of temporary staff unfamiliar with the processes, can influence the transfer and accuracy of accounts payable data. When these errors do occur, it is not always simple to recover the resulting losses. While external recovery auditors may offer numerous benefits and excellent services, it can be very expensive to use them for tracking duplicate payments.
Accounts payable audit software is able to locate duplicate payments before they are processed, and it can offer a rapid, cost-effective way of avoiding these losses. It can be used by any member of your accounts payable division easily and quickly to ensure that the process runs smoothly. When it comes to recovering losses attributable to accounts payable mistakes, it is recommended that you use a combination of recovery audit software for regular recovery, and an external auditor every 2-3 years to ensure maximum protection.
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