Any accounts manager will understand that things don’t always add up as easily as they should. It ought to be simple in principle: incomings, outgoings, profit, loss – the figures should balance. When they don’t, you can be virtually 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 these mistakes and problems, highlighting just how costly this can be for a company. Recovery audit software is one way of finding and tracking the discrepancies in your accounts system, gaining back the money you have unnecessarily paid out and avoiding the same thing from happening again in the future.
Whilst computer systems are reliable and predictable, 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 sent it to two different places in the hope 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 disorder of their own accounting system. Then there are the rarer cases of fraud, where people deliberately try to exploit loopholes in your accounts department. Naturally, you will want to be aware of these, since this represents a deliberate and criminal attempt to siphon money off from your company – rarer than simple error, but by no means unheard of.
Estimates vary about the extent of the issue of duplicate payments and other unnecessary payouts, and obviously it will depend on the scope and size of your business, as well as how organised and qualified your accounts department is. However, an accounts payable audit on the average business might typically turn up 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 in the first place. 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 safeguard in place.
Please visit http://www.fiscaltechnologies.com/ for further information about this topic.
http://www.fiscaltechnologies.com/
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