Accounts departments, just like any other department in a firm, are subject to human error. Even if your computer systems are infallible, or at least remove the most significant problems, there are still the weak links in the chain: the people who enter the data and send the invoices in the first place. And unfortunately, more so than other departments, accounts are more likely to be misused for financial gain. This is where an accounts payable audit can come in very handy, and might turn up some surprising answers. Errors such as duplicate payments, and deliberate fraud in accounting, can cost your business large amounts of money that you may not have. Of course, you may be able to discover the discrepancies and take care of them yourself, but this takes time and, therefore, money; there is also the reality that if you did not spot them the first time, you’re unlikely to come up with much new the second or third time through. The law of diminishing returns claims that the more time you spend on the problem, the less efficient you will be. That’s where recovery audit software can be worth its weight in gold.
No one wants to think that their business is inefficient – or, worse, that people are exploiting it. However, the reality is that if you have a share in a business, there are almost certainly discrepancies in the accounts system. In an ideal world, for many reasons, these would not be there at all. Some estimates suggest that error rates equal roughly 1 percent of turnover on average; others maybe a little more or less. That money could be better spent on paying staff and suppliers, or paying down debt. Faults may be unavoidable, but allowing them to go unchecked is not.
If you’re in any doubt about the benefits of recovery audit software, then check with the suppliers. If they are worth your money, then they should be able to guarantee that the cost of the set-up will pay for itself – perhaps even instantly. Plus, if having those procedures in place means that you will circumvent duplicate payments and other overpayment errors in the future, you will only continue to make money on your investment. An accounts payable audit is a straightforward way of recouping past losses and preventing future ones. At a time of uncertainty, no-risk ways of doing that can only be a worthy thing.
Please visit http://www.fiscaltechnologies.com/ for further information about this topic.
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