It is a fiscal truth that companies that do well develop in complexity over the years, which also enhances the margin for error. It is also a modern corporate truth that companies are finding it increasingly critical to discover new ways to grow revenue during these financially challenging times. For both these reasons, a recurring recovery audit employing recovery audit software has become an ever more necessary part of average business methods. The ultimate result of a recovery audit is an instant improvement in cash flow as it identifies lost profits and works to obtain their recovery and this works towards keeping the ‘bottom-line’ healthy.
Although the main role of a recovery audit is to recover lost profits through duplicate payments, an important consequence is its job in enhancing business practices and as a consequence assisting to lower outgoings. In the audit of businesses accounts processes, a recovery audit will also analyze why an overpayment was made and how it was allowed to be made. This is the beginning step in strengthening efficiencies in the payments chain. Increased efficiency leads to minimized costs and increased profit margins for companies.
There are a number of problems that recovery audit software and a recovery audit can discover that contribute to duplicate payments. For many companies, it’s simply a product of large transaction volumes and having multiple clients. The issues of scale mean that even a 0.1% error rate can mean thousands and even millions in lost profits for a corporation. Other issues can also be caused by recent, specific events that have happened for the company such as quick growth or company mergers, which can result in, for example, additional systems that don’t integrate properly and which can lead to errors. In this instance, the issue is a one-off one and has the notable advantage of only needing a one-off fix in order to fix.
A recovery audit team using professional recovery audit software can also identify deeper, on-going issues that can lead to continued duplicate payments. These are regularly issues concerning a company’s business processes such as inadequate controls, unreliable communication, a lack of standardized procedures and inappropriate employee training. All of these are contributing problems to a growth in duplicate payments and will demand a workplace to reflect on its workplace culture and potentially a permanent change in normal business practice and procedures in order to address it.
A recovery audit is often begun through the addition of a piece of recovery audit software. This can be the most economical and simplest solution to discover duplicate payments, particularly for small-to-medium companies. A variety of recovery audit software is available on the market, with variances in cost and size in order to accommodate every business.
For those workplaces with unique pricing mechanisms, a notable number of buyers or are just needing a more comprehensive and thorough audit in the hands of specialists, a qualified recovery audit team will demonstrate the best value for money. These analysts, alongside their software, will carefully analyze where duplicate payments are happening and can go one step further by proposing solutions to any identified errors.
When picking your recovery audit software, it’s crucial to take into account an assortment of issues. The first thing is if the audit software is compatible with your accounts software. This is a critical consideration in order to avoid unanticipated computer errors that can sometimes create problems. More factors to bear in mind is if the price of the software represents good value for a business of your size, how the software aims to achieve its objective and what its drawbacks are. If you choose to go with a recovery audit company, you will find that they typically use specialized software that has been created by the audit business itself. Therefore, the audit business should be completely familiar with the software and can implement it seamlessly into a business system while an audit is being conducted. A recovery audit team will also employ data technicians and analysts who can see what the software can not and, most crucially, advise a business on solutions to address any issues that were contributing to extra duplicate payments.
Author: Hugh RobertsThis author has published 5 articles so far.