Recovery audits and accounts payable audits sometimes miss accounting anomalies between companies and their suppliers. These are typically caused by post-payment adjustments such as refunds, returns, and warranty issues, Accounting Today reports.
For large companies, this can result in the loss of millions of dollars per year. Companies looking to go deeper with their recovery audits and improve their credit recovery processes to make their bottom line more accurate must take several actions, according to the news source.
The first involves employing a system that automatically manages the information, integrates external data and flags issues. Leveraging technology provides an easy way to track, manage, analyze, and verify information sent between companies and suppliers.
Viewing statement auditing as an ongoing process as opposed to something that's conducted once or twice a year is also helpful when it comes to identifying and addressing issues. It's important to be proactive when searching for accounting anomalies and pinpointing their root causes. For instance, offerings such as Technology Insight's DataShark A/P Recovery Audit Software can help uncover duplicate payments.
Ownership & Accountability Are Essential to Clean Vendor Master Files
5 Steps to Cleaning Up Vendor Master Files
One Simple Question That You Can’t Answer