Even if your firm can’t afford to outsource an audit of Accounts Payable, you can bring some of outsourcing’s most successful tactics into your processes.
The key: having your A/P self-audit areas where outsourcing companies normally uncover the greatest problems.
Example: Almost 35% of the “lost” cash is due to duplicate payments.
Other problem areas are unclaimed discounts and sales tax overpayments.
For the best results, have A/P hone in on one specific area at a time in its search to uncover problems. If your staff doesn’t have a great deal of time to spare for the task, it may be a good idea to limit your search to a single vendor at a time.
Once you’ve decided a course of action, it’s important to review all important documents (contracts, invoices, other correspondence, etc.) with a fine-toothed comb.
If A/P does discover an area in which it’s owed money, tell them to be sure there’s a solid paper trail in place before pursuing the vendor about any credits, refunds, etc.
