Originally appeared in Supply Chain Brain on June 4, 2021
Companies are constantly on the lookout for ways to increase cash flow and reduce risk. One often-overlooked method for reducing profit leakage and increasing revenue is through the use of current or long-standing accounts payable (AP) recovery audits.
Within the AP process, errors often occur during the normal course of business, even in highly automated environments. Payment discrepancies and duplicate payments are two common issues that allow cash to slip through the cracks, creating unwanted profit leakage.
An AP recovery audit enables companies to recover erroneously paid funds and identify risk to help prevent leakage from recurring, thus improving their long-term financial position. An experienced third-party audit partner draws on advanced data analytics technology and statement outreach capability to identify potential errors in AP transactions.