Although recovery audits are intended to identify profits that were lost through duplicate payments, they can also be used to analyze and improve the business practices that resulted in the error being made. Frequent recovery audits can help companies ensure that accounts payable protocols are as efficient as they can be, which often leads to reduced costs and increased profit margins.
In some instances, large client bases and high transaction volumes are to blame for duplicate payments. Rapid growth or a recent company merger leading to system integration problems are other common culprits.
In the event of a cause not being immediately apparent, software such as Technology Insight's Accounts Payable Recovery Audit Services or even a professional audit team may need to be brought in to identify business process issues such as inadequate staff training, inefficient communication or a lack of standardized procedures.
When selecting recovery audit software, companies should consider a number of factors, including cost, compatibility with existing accounts software, and program limitations.