Accounts Payable News^®

Avoid complacency

Most companies are under the false impression that they are safe from the effects of overpayments and duplicate invoicing as they feel their own internal physical controls and integrated systems controls prevent this from happening.  However, time and again we find that all companies at some point will process invoices twice.  Whilst as a percentage the figures may sound small, in a large corporation they can actually amount to millions of pound. In fact if you’re paying more than 25,000 invoices a year, you are almost certainly making losses you know nothing about. Before you can begin to tackle the problem, it is essential that you get to the root of why this is happening.  After all, accountants aren't known for their lax attitude, so if a usually meticulous and methodical accounts payable department is making mistakes, it is essential to the bottom line of your organization that you find out why.

 
Ten Most Common Reasons:

1. Human error caused by the sheer volume of transactions
2. Deliberate misuse of the system controls
3. Changes in systems
4. The use of temporary staff
5. Complex and time consuming authorisation process
6. Mergers and takeovers
7. Delays in paying vendors
8. Fraud
9. Over zealous re-issuing of an invoice
10. Changes in vendor personnel

How can they be found?

Historically it has always been a long drawn out process involving many members of staff and a long haul through acres of paperwork.  Even so, this approach still did not necessarily deliver the right results. Although many companies still operate like this, these days an automated approach is more sensible.  With the purchase of “best of breed” duplicate payment finder technology; companies are now able to identify potential duplicates before payment is made saving their organisations valuable time and money.

7 Key Benefits of Duplicate Payment Software

1. Increases AP Control
2. Cuts costs
3. Supports compliance
4. Immediate payback
5. Reduces risk & fraud
6. Improves cash flow
7. Raises profitability
With an increase in corporate completion and a drive towards an ever more streamlined and efficient workplace, can your company afford not to implement this kind of control?