Accounts Payable Recovery Audit is the process of identifying overpayments and unidentified credits that have been eating away at the savings of a company. There are many reasons why your company may want to have an AP Recovery Audit done.
Business Factors That May Require an Accounts Payable Recovery Review:
Many companies believe that they have the necessary policies and procedures in place to catch any errors. They believe their best practices have been implemented, so there is no need for a review. However, consider all the reasons overpayments occur such as:
Our Accounts Payable Process
PMBA is a leading cost recovery services provider, trusted by companies across all industries to reduce costs, improve spend under management, and enhance their financial performance. Our team of experienced business and finance professionals efficiently deliver results that exceed our client’s expectations and assist in improving internal processes to ensure greater accuracy in financial operations.
Our Accounts Payable reviews are conducted with three primary elements and two secondary elements to maximize recoveries with additional focal points to recover maximum money to our client’s bottom line.
- Electronic Data Review including a manual review of 57 query reports with our proprietary software that drives maximum potential recoveries to our clients.
- Complete and Comprehensive Vendor Statement Reconciliation of approximately 2500-3000 vendors based on overall disbursements,
- Manual Audit of documents and contracts for compliance or missed financial recovery opportunities,
- Unclaimed/Abandoned Property Search completed in all 50 states and internationally when applicable and
- Outstanding Check Review of all standard components to our accounts payable and cost recovery best practices
These focal points are the key drivers that allow us to identify and maximize recoveries of lost revenue that have slipped through the cracks.
Accounts Payable Process Background
PMBA’s cost recovery and savings initiatives are specifically geared towards finding savings nuggets located within any business. We perform an advanced analytical examination and identify the best opportunity quickly and efficiently. The effort to get this underway is minimal and our client’s expected internal effort will be minimal because of our use of advanced artificial intelligence and machine learning software solutions and methodology. PMBA’s platform helps to differentiate our services and allows us to identify and discover discrepancies that no other firm can.
Types of Recoveries
Spend Analysis & Opportunity Assessment
PMBA has an exclusive partnership with Source One. We can provide clients with access to Spend Consultant, the premier spend analysis and opportunity assessment platform.
Source One will cleanse, classify, and analyze the clients spend data using our SpendConsultant.com platform. Using our proprietary taxonomy, we align the clients spend by supplier into strategic sourcing categories and provide visibility into company-wide spend.
We will then benchmark this data against our market intelligence, categorize subject matter by expertise and experience to build an Opportunity Assessment – showing savings potential alongside curated market intelligence and strategies that can be employed to realize savings and performance improvements.
Fraud Detection Services
The Accounts Payable process is relatively easy to abuse, and many gray areas are involved which entice widespread abuse – jeopardizing the morale and integrity of your company’s employees.
Auditing transactions can send a very strong message to employees and vendors that spending is being monitored closely, and will reduce the abuse and fraud going forward.
Our risk-based approach is focused on laying the foundation to develop long-term sustainable automated processes that identify cost recovery and fraud in your Accounts Payable records.
Our solution is specifically driven to find the three major types of Accounts Payable fraud:
- Check and ACH Fraud
- Billing Schemes
- Fraudulent Expense Reimbursements
Depending on factors such as your company’s size, number of suppliers, the scope of the audit and ease of source document access, we can normally complete the profit recovery process review between 3 to 6 months.