If you’re running a business, then hiring a professional to take care of the accounts payable audit for your company is a must. Outsourcing financial and accounting tasks is often the best option, the Houston Chronicle says. It helps you save on time and money, prevents mistakes and gives you the best results possible.
Identify problems
An audit of your accounts payable can identify gaps in your in operations. Sometimes, it could be due to bad technologies or tools being used. Other times, it could be caused by new processes or old ones. Having a third party come in and evaluate your operations can help identify these problems so you can work on fixing them.
Applying and Receiving your credits
Supplier Credits are the #1 Over Payment issue according to Accounts Payable Audits. Accounts Payable Recovery and a Post Payment Audit are reactive (after the fact) and are much more costly to recover and collect what Suppliers owe you. For larger organizations this can amount to 1 million or more each year!
Prevent duplicate payments
You could be overpaying by as much as a thousand dollars or even more. That can easily happen if you’ve got an inefficient payment system in place. Keep that from happening by using a solid billing system. That’s something a specialist for the accounts payable audit process can help you with so you get the control you need to manage and lower your payment risks.
Comply with your contracts
Preparing contracts can take a lot of time and trouble. They need to be read, signed and negotiated. However, if you don’t pay attention to the contract or forget to keep the details in mind, you could find yourself paying for services that should be free in the first place, according to the contract you signed. With the help of a third party accounting specialist, those details won’t slip past you. You won’t have to worry about overpaying when your accounting specialist is there to cover your back.
Lower fraud risks
A badly-run department makes it much easier for employees to lie and cheat. An audit of your payable accounts can easily figure out if that’s happening and spot any red flags so you can take appropriate steps to prevent them.
