Are you leaving money on the table?

As a financial professional, you’re likely no stranger to the complexities of accounts payable.

But did you know that an audit could uncover thousands of dollars in overpaid or misallocated funds?

In this article, we’ll delve into the practice of accounts payable recovery audits, exploring what they are, how they work, and most importantly, how they can benefit your business.

What is an Accounts Payable Recovery Audit?

An accounts payable recovery audit is a thorough examination of your company’s accounts payable transactional data to identify and recover overpaid or misallocated funds.

This type of audit is designed to:

• Uncover historic payment errors
• Find discrepancies
• Discover inefficiencies in payment processes

This helps ensure that your business is not losing money unnecessarily.

By conducting a regular accounts payable recovery audit, businesses can not only recover lost funds but also gain valuable insights into their payment processes, enabling them to implement corrective measures and prevent similar errors from occurring in the future.

Common Accounts Payable Challenges You Might Be Facing

From ensuring timely payments to vendors and suppliers, to maintaining accurate financial records, the AP process can be complex and time-consuming.

But what happens when errors, discrepancies, and inefficiencies creep into the AP process? The consequences can be costly, leading to:

• Overpaid invoices: Duplicate payments, incorrect payment amounts, or payments made to the wrong vendor.
• Unclaimed credits: Unclaimed credits or refunds from vendors or suppliers can go unnoticed.
• Misallocated funds: Funds allocated to the wrong account, department, or project can lead to financial inaccuracies and difficulties in tracking expenses.
• Unnecessary fees: Unnecessary fees or charges from vendors or suppliers can add up quickly.
• Inefficient payment processes: Manual payment processes, lack of automation, and inadequate controls can lead to errors, delays, and increased costs.

Addressing the Challenges with a Recovery Audit

An AP recovery audit helps solve the above pain points by:

• Identifying and recovering overpaid funds: An AP recovery audit identifies and recovers overpaid invoices, unclaimed credits, and misallocated funds.
• Improving financial accuracy: By identifying and addressing errors and discrepancies, an AP recovery audit ensures the accuracy and integrity of your financial records.
• Streamlining payment processes: An AP recovery audit helps optimize payment processes, reducing the risk of future errors and improving efficiency.
• Enhancing vendor relationships: By identifying and addressing potential issues with vendors and suppliers, an AP recovery audit can improve relationships and reduce the risk of future errors.
• Providing peace of mind: With an AP recovery audit, you can rest assured that your AP process is accurate, efficient, and optimized, giving you peace of mind and allowing you to focus on growing your business.

By addressing these pain points, an AP recovery audit can have a significant impact on your business, helping you recover lost revenue, improve financial accuracy, and optimize payment processes.

How Do I Know if an AP Recovery Audit is Right for my Business?

As a financial professional, you’re likely always on the lookout for ways to optimize your operations, reduce costs, and improve efficiency.

But how do you know if an AP recovery audit is the right solution for your business?

Here are some signs that an AP recovery audit might be a good fit for your organization.

You’ve recently went through an ERP migration:

Changes in ERP software can cause overpayments to spike. If your organization has switched ERP systems within the last few years, it’s very likely that overpayment errors occurred during that transition.

You’re experiencing high volumes of transactions:

If your business processes a large number of invoices, payments, and credits, the risk of errors and discrepancies increases. An AP recovery audit can help identify and recover any overpaid funds.

You’ve recently undergone significant changes:

Mergers, acquisitions, or changes in leadership can lead to disruptions in your AP process. An AP recovery audit can help ensure that your financial records are accurate and up to date.

You’re struggling with manual payment processes:

If your AP process is still largely manual, you may be at risk for errors, delays, and increased costs. An AP recovery audit can help identify areas for improvement and optimize your payment processes.

You’re concerned about financial accuracy:

If you’re unsure about the accuracy of your financial records or have concerns about potential errors or discrepancies, an AP recovery audit can provide peace of mind and help ensure the integrity of your financial data.

Additional Questions to Ask Yourself

To determine if an AP recovery audit is right for your business, ask yourself:

• Have we experienced any significant changes or disruptions in our AP process recently?
• Are we struggling with manual payment processes or high volumes of transactions?
• Are we concerned about the accuracy of our financial records?
• Are we looking for ways to reduce costs and improve efficiency?

How Does an Accounts Payable Recovery Audit Work? What You Can Expect.

A typical accounts payable recovery audit involves a comprehensive review of your company’s payment history. If you’ve determined that an AP recovery audit is right for your business, here’s what you can expect:

1. Transactional Data Collection: A recovery audit firm will need all transactional data to identify overpayments. This will be collected through a data transfer of accounts payable data and outreach to all suppliers for a supplier statement.
2. Comprehensive Review: A thorough examination of transactional data and supplier statements to identify potential errors or discrepancies.
3. Identification and Recovery of Overpaid Funds: Identification of any errors, discrepancies, or areas for improvement, with recovery of any overpaid funds or unclaimed credits.
4. Detailed Reporting and Recommendations: A detailed report outlining the findings and recommendations for optimizing payment processes and improving financial accuracy.

This review helps identify areas of potential recovery and provides a clear understanding of your company’s payment processes and procedures.

Why Partnering with an AP Recovery Audit Provider Beats In House Audit Every Time

When it comes to recovering lost funds and optimizing your accounts payable process, you have a few options to consider. One of these options include in-house audits.

Conducting an in-house audit can be a daunting task, requiring significant time and resources from your team. Not only do you need to dedicate staff to reviewing transactional data, but you also need to ensure that they have the necessary expertise to identify errors and discrepancies.

So why choose an AP recovery audit partner over in-house?

Here are just a few reasons:

Expertise: AP recovery audit firms have the expertise and experience to identify errors and discrepancies that may have been missed by in-house staff or other types of audits.

Cost savings: AP recovery audits can help you recover significant amounts of lost funds, which can be reinvested in your business.

Efficiency: AP recovery audits are typically faster and more efficient than in-house audits due to their internal processes and audit technology, allowing you to get back to business as usual sooner.

Objectivity: AP recovery audit firms are objective and unbiased, ensuring that the audit is conducted in a fair and impartial manner.

By choosing an AP recovery audit partner, you can ensure that your accounts payable process is optimized for cost savings and efficiency, and that you’re recovering all the lost funds you’re entitled to.

Getting Started with an Accounts Payable Recovery Audit

Recovering lost funds and optimizing your accounts payable process is easier than you think. Here are how to take the first steps to recovering lost funds.

1. Connect with a trusted expert: Reach out to a specialized audit firm that can help you identify and recover overpaid or misallocated funds.
2. Allocate resources: Audits don’t typically require a lot of time when working with a audit firm, but there are two points where an internal resources are needed. One, transferring the transactional data from your internal databases to the recovery audit firm, which will most likely require an IT resource. And two, processing identified overpayments, which is an accounts payable resource.
3. Schedule your audit: Arrange a time for the audit to take place, and let the experts handle the rest – from analysis to recovery.
4. Implement process improvements: Based on the findings of the audit, implement changes to your accounts payable process to prevent similar errors or misallocations from occurring in the future.
5. Establish ongoing monitoring: Regularly review and monitor your accounts payable process to ensure that it remains optimized and that any new errors or issues are quickly identified and addressed.
6. Consider automation: Consider implementing automation tools or software to streamline your accounts payable process and reduce the risk of human error.

By taking these steps, you can not only recover lost funds but also ensure that your accounts payable process is optimized for long-term cost savings and efficiency.

Final Thoughts

In conclusion, an accounts payable recovery audit is a best practice for businesses looking to recover lost funds and optimize their payment processes.

By identifying and addressing errors, discrepancies, and inefficiencies, you can improve financial accuracy, enhance vendor relationships, and unlock significant cost savings.

Taking control of your accounts payable process is through a recovery audit is your path to financial clarity and confidence. Getting the expertise, efficiency, and objectivity, an AP recovery audit is the smartest way to recover thousands of dollars in lost revenue and transform your business for long-term success.

Ready to Get Started with an AP Recovery Audit?

Contact apexanalytix today to learn more about our expert AP recovery audit services and discover how we can help you recover thousands of dollars in lost revenue.