5 Reasons for Accounts Payable Error Increases During the COVID-19 Era.
Here at Technology Insight, we use our cutting-edge DataShark tool DataShark A/P to perform recovery audits for a variety of clients. Through these audits, we’re able to reduce, recover, and redeploy lost profits.
In our recent recovery audits, we noticed a significant increase in errors. These errors are most likely the result of business process changes caused by COVID-19. Here are several explanations for them.
1. Remote Work
The pandemic has forced many companies to shift to remote work. Now that more and more teams are in their own homes instead of together in the office environment, they don’t have the tools necessary to perform at the same level of accuracy.
Therefore, they’re more susceptible to questionable invoices. Instead of dual monitors and easy access to their managers, for example, they work on small laptops and find it more difficult to ask their managers questions.
2. Increased Workloads
Due to the financial implications of COVID-19, some companies have had to fire or furlough part of their accounts payable department. The reduction in staff has led to an increased workload for those accounts payable professionals who kept their jobs. Accuracy issues arose as they were required to enter more invoices in the same amount of time.
3. Lack of Approval Processes
Most companies implemented an approval process for invoices over a certain dollar amount. The remote work culture and lack of visibility has made it a real challenge for them to follow through with these processes. When this occurred, most high value invoices were being paid without any oversight or approval.
4. Multiple Invoice Payments
Now more than ever before, vendors want to ensure they receive prompt payment. As a result, many of them have sent out multiple invoices via fax, email, and snail mail to their clients. Many companies have unintentionally paid the same invoices multiple times.
5. Minimum to No Automation
There’s no denying that automation can reduce errors in accounts payable. Due to budget constraints and staff shortages, however many companies have had to cut or reduce their automation tools. This has led to an increased focus on manual processes and human errors that stem from inefficiency.
Schedule a Technology Insight Recovery Audit Today
If you’d like to recover lost profits for your business and thrive during these unprecedented times, it is in your best interest to schedule a recovery audit. For more information, request your free assessment today.
