Accounts can be a complex process, which in terms of the bottom line means they can be a costly business. There aren’t many firms that don’t have some kind of mistake in their books at the end of the year. That can have different consequences, some of them major. On the one hand, it might just mean the figures don’t quite add up, little more than a frustration to an accountant somewhere. On the other, it could result in a substantial loss of cash for your organisation, or a problem with the Inland Revenue. An accounts payable audit can help you smoothe out many of the glitches in your accounts, enabling you to locate issues such as duplicate payments and other types of overpayment. This is all possible using specialist recovery audit software, which checks your accounts and finds sources of mistakes. The results can be shocking, particularly for larger organisations, and can represent a significant saving. In fact, the software could easily pay for itself the first time you use it.
Audit software is versatile enough to check for not only problems that happen due to negligence or accident – simple human error – but also more sinister cases, such as fraud, when a client deliberately overcharges you or keeps funds that you have paid by mistake. (In fact, the Inland Revenue uses this kind of software to check returns, using the information to identify possible occurrences of fraud.) That’s important, because if your client list is long or complicated, there may well be opportunities to exploit that, costing you even more money. Running the software will flag up suspicious entries, enabling you to regain funds that you never should have paid in the first place. That’s got to be a good thing in difficult times, when every little extra could mean the difference between balancing the books and wondering about ‘efficiencies’ – usually meaning layoffs – or even worse.
If you’re in need of convincing, start with the (not unreasonable) principle that errors could account for 1 percent of turnover, perhaps more. What does that equal in cash terms, and is it worth pursuing – apart from any other concerns such as tax returns and catching fraudsters? For most companies, the answer will be a clear ‘yes’ – recovery audit software is inherently worthwhile. duplicate payments and other overpayments can be hugely and unnecessarily expensive, so an accounts payable audit is often highly illuminating.
Please visit http://www.fiscaltechnologies.com/ for further information about this topic.
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