Originally appeared on AccountingWeb, January 26, 2020
If you already have a contract compliance program in place for your clients, you know they help recoup historical cash leakage. But in an age when automation and continuous improvement are reshaping ideas about value, is that enough?
Supplier contract audits can work well, but on their own, the best they can deliver is a proportion of what’s already been lost. What if you could help raise the proportion saved by stopping value leakage before it starts?
Making Audits Deliver More
A typical contract compliance audit looks back at supplier payments over the previous three to four years. Completing an audit can take up to six months, with regular input from procurement and finance needed throughout the process.
Suppliers and buyers are accustomed to this, but many on both sides have started asking why technology and best practice aren’t helping flag issues sooner. It’s a good question, with an even better answer: By moving to proactive methodologies, your clients can now stop cash from going out the door, and turn contract compliance audits from reactive to preventive.