Accounts payable recovery audits are becoming an increasingly important tool for businesses to maximise their profits and maintain financial health. These audits involve reviewing a company’s accounts payable transactions to identify any errors, overpayments, or missed discounts that may have occurred during the payment process. By conducting a thorough analysis of these transactions, businesses can recover any lost funds and prevent future financial losses. In this blog, we’ll explore accounts payable recovery audits and their importance in maintaining financial integrity within an organisation.
Poll results
In our most recent LinkedIn poll, we asked our social media followers if they perform accounts payable recovery audits.
Accounts Payable Recovery Audits: What We Found
The poll results reveal an interesting split. An equal percentage of respondents, accounting for 50% each, indicated that their organisations perform accounts payable recovery audits. Let’s delve deeper into these findings and examine the significance of this practice.
The results of the poll highlight the importance placed on audits by organisations striving for financial accuracy and operational excellence. Let’s explore the implications of these outcomes:
The fact that 50% of respondents indicated that their organisations perform audits suggests a strong recognition of their value in ensuring financial integrity. Here’s what these outcomes signify:
Yes, often:
Organisations that perform audits frequently demonstrate a proactive approach to identifying and rectifying discrepancies, errors, or potential leakage in their payment processes. These audits help detect overpayments, duplicate payments, missed discounts, unclaimed credits, and other financial anomalies, leading to cost recovery and increased financial accuracy.
Yes, but we need to do more:
Respondents who selected this option acknowledge the significance of audits but feel that there is room for improvement or expansion in their current practices. This indicates a willingness to further enhance financial control, mitigate risks, and recover potential funds that may have been overlooked.
Performing regular accounts payable recovery audits can yield several benefits. This includes increased cost recovery, improved cash flow, strengthened supplier relationships, enhanced compliance, and better overall financial health. By diligently scrutinising payment data and documentation, organisations can uncover and rectify discrepancies. This can result in significant financial savings and process improvements.
Not yet, but considering – 0%:
Interestingly, none of the respondents chose the “Not yet, but considering” option, indicating that the concept may not be on the immediate radar of organisations that participated in the poll. However, it’s worth noting that this outcome doesn’t diminish the importance or relevance of accounts payable recovery audits. It simply suggests that the organisations surveyed may already have well-established audit processes in place or have yet to explore the potential benefits of this practice.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your supply chain strategy, get in touch with us.