Most managers of Accounts Payable (AP) wince at the word “Audit” however there is one type of audit that can prove to be very beneficial to AP and the company as a whole: an Accounts Payable Recovery Audit.
An Accounts Payable Recovery Audit could uncover mistakes that were made previously, and then corrections can be made or procedures revised to prevent such errors from occurring again in the future.
Additionally, an Accounts Payable Recovery Audit can reveal vendor credit memos due to the company that were never received by Accounts Payable or uncover cash application errors made by vendors.
In this course, we explore the benefits of an Accounts Payable Recovery Audit. We also identify the amount of effort required by the company’s Accounts Payable and Information Technology (IT) teams in order to maximize the amount to be recovered. A successful recovery audit does take time.
As a reminder, Accounts Payable is not just about processing vendor invoices for payment. We also touch on the benefits of having billed amounts compared to contracts, the accuracy of sales tax billed on invoices and discuss the audit of Purchasing Card transactions.
Finally, we explore what to look for when selecting an Accounts Payable Recovery Audit company and examine how the services are billed. It should be a relationship that fits in with your organization.
Review Questions: Benefits of An Accounts Payable Recovery Audit
Final Exam: Benefits of An Accounts Payable Recovery Audit
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I started CS Process Flows, LLC in April of 2016 after a 30+ year career working in various accounting areas. My career in accounts payable started when I was hired as a processor. Then I worked my way through accounts receivable and general accounting before coming back to accounts payable as a manager. The challenges presented in Accounts Payable and all of the exciting changes going on in this area over the last few years and into the future are my passion.
My experience includes building new AP operations, identiifying ineffecienies and implementing solutions in existing teams and being involved with other areas of the Procure to Pay work stream. I have success in establishing and strengthening relationships with team members within Procurement, IT, and other areas of finance when working on AP related projects and with management of outsourced delivery centers overseas.
Needless to say, I have learned a lot and I want to share my knowledge with companies that may be just starting to explore some of the options now available. or simply what to improve their current operations.
My experience includes managing up to 25 AP staff members processing upwards of 30K invoices a month, so I am very aware of what it takes to manage transations. I have also managed the implementation of several different types of AP workflow systems over the years, a Concur Travel and Expense reporting system, different Corporate Card programs, including both Purchasing and T & E cards, and ACH payment programs. My experience also includes a project to outsource check printing and the transition of 7 Tyco Business Units to an outsourced delivery center in India.
I am an Accredited Payables Manager (APM).
I hope by sharing what I have learned, I can help you.