CPD Accredited Webinar: Expert Strategies for Surviving Your Accounts Payable Audit - Thursday 25th April - 2:00 PM (GMT) l 9:00 AM (ET)

The risks of duplicate payments to your organisation

In this blog, we answer the question, why is finding duplicate payments and invoices important in AP?
A man taps a virtual screen with two matching documents on it, signifying a duplicate invoice or duplicate payment being found

Duplicate payments and working capital

The Institute of Finance and Management (IOFM), around 1.5% of an organisation’s total outgoing cash flow is duplicate payments. To put this in perspective, a company with outgoings on £1 million may be paying out £15,000 in double payments. By this statistic, a very large company like Apple, whose costs in 2020 amounted to $170 billion, could have duplicate invoices amounting to $2.5 billion.

With these figures, it’s easy to see how duplicate payments can affect a business. Working capital is decreased, and as a result it could mean the difference between being able to pay all your expenses, or not. That 1.5% of spend suddenly becomes very valuable when it represents a third of your working capital. Or rather, a potential extra 30% working capital for those who miss their duplications.

How double payments affect supply chain

Another reason this is important is because they cause huge disruption to your daily accounts payable tasks. Instead of getting suppliers paid, the team need to contact the supplier and go through the recovery process, which is time-consuming and costly. It could also mean a more strained relationship with your supplier as a result.

The effect of duplicates on accuracy

Duplicate spend is also harmful to your reporting accuracy, as without knowing it has been made, it can show your team is spending more than they should be.

Laptop showing our transactional risk management software and it's capabilities to find risks including duplicate payments and fraud, to enable working capital optimisation
Our software provides you with the tools you need to identify duplicate invoices and prevent double payments

The benefits of preventing duplicate payments

The benefits of finding your duplicate invoices vastly outweigh those issues. Not only do you prevent overspend and therefore optimise working capital for more effective spending, if this is done before payment, you avoid the whole recovery process and save the team so much time. Duplicate invoices in some cases can be potentially fraudulent, so this contributes towards your duties to fraud prevention, and we all know how many issues a fraud case can cause an organisation!

Find out more about our duplicate payment detection software for accounts payable.

Share This

Facebook
Twitter
LinkedIn

For further information or to request a demo:

Would you like to know more about what FISCAL can do for you? Contact us at:
[email protected] or call +44 (0) 845 680 1905

OR

Popular

Archive

Archives

Category

Categories

Want to know more about FISCAL Technologies?

We’d love to show you our solutions in action!