Post Payment Audits – Running a business is, at least in part, a numbers game. Entire teams of people have to manage profits, expenses, payroll, and beyond. It’s a near constant battle to manage overhead and the bottom line, maintain profitability, and stop any financial leaks along the way.
This is no small undertaking, and when small mistakes pile up, they can result in massive amounts of money hemorrhaging away from the company. One powerful way to reduce such lost finances: the post payment audit.
While different industries may use this term in different ways, the basic idea remains the same. After a payment is made, or in some cases, a transaction based on supplier credits, an audit is performed to verify that everything about the transaction is accurate, necessary, and properly documented. Following up on supply orders, credits used or applied, and the related documentation allows companies to “spot check” their processes, identifying gaps in training and recovering money lost on overpayment. When working with a credit system, it’s also easy to leave money on the supplier’s table if totals and available credits aren’t regularly reviewed.
On the other side, post payment audits are also used to verify and review incoming transactions, ensuring that credits applied make it to your accounts payable department, and that all of the money owed to your business actually makes it into the bank.
Again, this can look a little bit different for different industries and types of businesses, and the types of audits necessary will vary depending on whether you’re a buyer or a supplier. You may even be both, and need audits on both sides of your incoming and outgoing payments. Unfortunately, this process can be time consuming and expensive to do in-house. It’s also possible that the staff involved can be “too close” to the systems, and overlook the details that make the audit worth performing in the first place.
With third party solutions like ours, the whole audit process is systematic. We rely on our expertise across a wide range of industries to identify problems and pursue solutions.
To stop leaking money, and to make sure you’re getting all of the payments owed to your business, contact us today to discuss our auditing services in more detail!
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