Audits can perhaps be a dirty word in AP. Why? Because they’re the kind of chore that means a whole lot of preparation and stress. But with automation, not only can you bring audit-like capabilities in house, but you can also reap some incredible benefits.
Can you automate an accounts payable recovery audit?
Using technology to automate your AP recovery creates a much more efficient approach. Where a typical manual audit means sifting through paperwork that could date back years, instead you would use a software to check your historical data for accuracy and errors.
What are the benefits of recovery audit software?
Increased cost efficiencies and savings
We won’t beat around the bush. The biggest saving you can make with internal recovery is in cash. By making the process internal, you cut out the middle man. You no longer need to pay someone else to do the job for you, and the only thing eating at that cash is recovery. Now, imagine the audit was before your payment run. The cash doesn’t even leave the business, so it doesn’t eat into your working capital.
Productivity and time gains
That cash benefit is compounded by the time savings being made by your team. If you decide to complete audit continuously, then recoveries are minimal, so the team can get on with their daily work. As a result, you should see an increase in productivity.
Of course, the Accounts Payable Recovery audit is something that can take a vast amount of preparation, of going back and forth with the auditor. Recovery audit software also removes that issue, via a one-time implementation. You can use the platform as regularly as you would like, but we recommend checking it daily for best results. It leaves your team to simply rectify the errors and make recoveries where necessary, not dealing with an audit process year on year.
Accuracy improvements
Lastly, when completing audits regularly and more easily, and catching errors before the payment run, your ledger accuracy increases exponentially. This allows your organisation to make better data-driven decisions, as leaders will see financial information that accurately reflects the amount of working capital and spend.
