Duplicate Payments – Costing You More Than You Can Guess

How much oversight do you really have over your accounts? You might have a fair idea of what is coming in and going out every quarter, but what do you know of the detail? The fact is that it would be unfeasibly time-consuming to have every payment you make or receive tallied against invoices, statements and other paperwork. That’s why duplicate payments, fraud and other glitches can cost businesses so much. The more transactions you make, the more money you are likely to be throwing away due to payments that are unnecessary. An accounts payable audit helps you to find where the leaks are in your system, throwing up warning signals when it seems like you have paid businesses or suppliers when you shouldn’t have done. Recovery audit software allows you to gain back what you have lost over time.

Often the problem will be innocent enough. The average invoice might have something like twelve fields of data in it. Fill out or copy one of these carelessly and the result could be an inaccurate payment – perhaps too much, perhaps too little, perhaps something that has been paid already. The mistake could have happened at your end or when the invoice was written. However, in some cases it’s more dishonest than this. Unscrupulous suppliers might double-send an invoice, knowing that you don’t have the systems in place to catch such dodges. The amount might be familiar, and so it goes through the accounts without a second thought.

duplicate payments and other types of overpayment can be a significant fraction of a firm’s turnover. If you engage in significant volumes of low-value transactions, then even a small proportion of these will start to make a mark in your profit margin – and could mean the difference between sinking and staying afloat. Carrying out an accounts payable audit will often pay for itself the first time you do it. However, you should employ recovery audit software as soon as possible, because the longer you leave it the lower the chances of retrieving your money. Companies go out of business, and individuals die or move away. If this has happened then realistically there is not a good chance of being compensated. Perhaps more importantly, you need to know what is going wrong in the present – it won’t just be past mistakes. There may be instances of ongoing fraud you need to protect yourself against, or cases where repeated problems occur month after month, and cost you more and more as you go on.

Please visit https://www.fiscaltec.com/us for further info.

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