Statement reviews play an important role in reducing financial loss. Many A/P organizations actively request statements from their top vendors on a regular basis, but are unable to extend this review beyond them because of the extensive resource requirement. For A/P organizations that attempt a more comprehensive statement review, many admit that even with an increase in resources, they are still met with a large percentage of unfulfilled requests.
No Vendor Left Unturned
Technology Insight’s Statement Audit Services include a comprehensive statement review process that utilizes our vendor targeting technology to profile each and every vendor. This enables Technology Insight to extend its campaign beyond the obvious vendors to include vendors that are likely to deliver a recovery item(s) but would most likely not be approached by other recovery audit firms due to the basic profiling methods still employed by many of these firms.
Our technology and process have been developed to enable us to reach a significantly greater number of vendors within a standard audit time frame while recognizing a much higher percentage of completion that other recovery audit firms – all of which is 100% transparent to our customer.
Vendor Targeting & Tiering
Technology Insight’s vendor targeting is contrary to the traditional approach most Recovery Audit teams employ. Instead of simply focusing on the client’s largest spend suppliers, TIC targets vendors with greater finesse.
While a large spend amount is a good place to start an audit, one must not overlook vendors with:
- Prior Duplicate Payment Issues
- Inconsistant Business Processes
- Heavy Credit Volumes
- High Transactional Volumes
Many vendors who fall into that category would not be analyzed if we were to only analyze those with the highest spend amounts.
The Auditing Process
Once Technology Insight finalizes the vendor list with clients, the auditing process can begin. Every targeted supplier is contacted and a statement is requested. The statement can then be sent in via numerous formats (fax, email, web portal, or standard mail). TIC has a 92% conversion rate from statement requests to received statements.
Once the statements are received, they are inspected and reviewed for open credits or other issues. Vendors who report no open credits are reviewed further to determine if that information is plausible. Instead of accepting the statements at face value, TIC’s recovery team will analyze historical spend amounts to determine if the vendor has provided the correct information.
Once open credits and other lost profits are recovered, TIC ensures that all the supporting documentation is collected in order to find the root cause of the originating error. This enhances the final result by allowing clients to see breakdowns in their business processes and then target those areas for improvement.