Recovery Audit Services
Seeking to lower our clients’ rates of erroneous payments, we offer complete recovery audit services that combine the use of a payment recovery software with audits that can improve a business’ overall financial standing. Our solution can also help you reduce the cost of recovery audit.
|Types of companies addressed||Medium and large companies from most business areas|
Accounting areas targeted
- accounting departments,
- accounts payable
Type of recovery audit
Accounts payable audits
|Actions completed during the audit|| |
- duplicate payment verification,
- invoice processing errors,
- currency error verifications
|Assessment of invoice payments (YES/NO)|| |
|Possibility to correct erroneous payments (YES/NO)|| |
|Financial recovery (YES/NO)|| |
|Duration of audit process|| |
A few mintues thanks to the Artificial Intelligence
|Fraud payment discovery (YES/NO)|| |
|Types of frauds addressed|| |
- duplicate payment frauds,
- billing schemes,
- invoice inconsistency frauds
|Documents verified|| |
- invoices (paid and unpaid),
- allowances, etc.
|Recurrence period|| |
|Advantages of recovery audit|| |
- efficient tool against financial fraud,
- easy to use software,
- quick and reliable accounting tool,
- personalized results
|Access to recovery software (YES/NO)|| |
|Recovery audit service availability (YES/NO)|| |
|Activities performed during the audit||Review of the company's financial transactions, data, and operations|
Mandatory or optional procedure
|Recovery audits are optional|
Purpose of recovery audits
Among the purposes of recovery audits are:
- ensuring payment accuracy,
- increase operational efficiency,
- ensure compliance regulations are respected
|AI-based service (YES/NO)||YES, our software uses Artificial Intelligence for speed and accuracy purposes|
|Possibility for the audit to be conducted by staff (YES/NO)||
YES, staff can be trained to conduct such an audit
|Possibility to reduce workload on employees (YES/NO)||
YES, workload on employees can be reduced by 50%
|Option to verify incoming invoices (YES/NO)||
Incoming invoices can be verified prior to being processed and paid
|Possibility to prevent financial losses (YES/NO)||
Recovery audits are great financial loss prevention tools
|Indications to perform recovery audits||
Audits should be performed in case of changes at:
- accounting department levels,
- accounting software updates or changes,
- when other changes in the organization occur etc.
|Customizable service (YES/NO)||YES, the recovery audit can be customized by area, department and type of verification performed|
|Payment accuracy enhancement (YES/NO)||
An audit can lead to significant improvement in the invoice payment process
|Support in improving operational process (YES/NO)||
YES, the recovery audit can enhance the operations across the accounting department
|Possibility of integrating PAID Analytix's software in existing accounting programs (YES/NO)||
YES, our software can be used alongside other accounting programs
|Errors that can be uncovered during a recovery audit||
- Operational oversights,
- client information that has not been updated,
- account information inconsistencies
|Importance of recovery audits||Recovery audits are important for all large companies that must keep track of financial transactions and that want to have good relations with their suppliers and clients|
What is a recovery audit?
Recovery audit is also known as payment or accounts payable audit as covers the procedures of reviewing a company’s financial transactions and the data and operations behind them with the purpose of recovering wrongful payments and deductions made to suppliers.
A recovery audit is a very important part of the financial operations in a business, especially when noticing discrepancies between the amounts of money paid to suppliers and the data on the invoices entering the AP department.
Because financial audits can be lengthy and strenuous, our recovery services which rely on Artificial Intelligence can be a suitable solution for business owners managing large volumes of data through the Accounts Payable departments.
Standard verification procedures can imply accounts payable audit completed periodically in order to check that obligations, invoices, and other expenses related to procurement have been documented correctly using accounting software or manual methods and are accurately reflected in year-end financial statements. AP departments handle substantial amounts of money, so it is crucial for businesses to have accurate audits performed.
How does the recovery audit work?
Recovery audit is the main tool used by companies in need of assessing and correcting payment errors. This type of audit goes hand in hand with the payment recovery process and in its beginning, it was mostly used by retail companies generating thousands of invoices every day.
With the recovery audit services offered by our company, not only retail businesses can benefit from the assessment and correction of erroneous payments, as our AI-based services are customized to the needs of every type of business, no matter its size.
Among the services you can rely on us are also AP recovery audit, where most of the problems are sourced.
Types of recovery audit services offered by PaidAnalytix
Our recovery audit services target various departments involved in the accounting of a firm, being tailored to each company thanks to the simple introduction of minimal information on the company’s payments on our web platform.
Here are some of the recovery audit services you can obtain from us:
- accounts payable audits which imply a thorough assessment of the payments made by this department;
- currency error verifications which have proved to lead to many mistakes when dealing with payment recovery;
- financial losses reporting based on the extensive audit services provided through our AI platform;
- erroneous payments identification services which are the source of a large amount of money losses.
With our recovery audit firms and accounts payable services, these mistakes can be detected in the first stages and thus we can offer one of the best methods of avoiding serious payment issues. With our payment recovery software, such an audit is completed easily and fast.
You can read about our recovery audit services in the scheme below:
When is the recovery audit indicated?
To most business owners, the financial health of their companies relies on the financial statements which usually reflect a business’ annual revenue, however, not all losses are revealed. A recovery audit can do just that: provides accurate information on the real losses registered by a company. A recovery audit completed with the help of an Artificial Intelligence-based software can definitely shorten the time spent on verifying the financial documents and invoices issued by a company and even more, it can make predictions on how to avoid future losses.
With our recovery audit services, the problem related to missed payments is handled from several points of view. The first one refers to the large volume of payments an accounting department has to deal with on a daily basis and which can lead to many mistakes. The second one refers to fraud payments which are often not taken into consideration. Overpayments and duplicate payments also play an important role in the accounting errors found during a recovery audit.
With the help of our payment recovery software, all these mistakes can be corrected, while future errors can be prevented. Most of the time, an audit starts with the accounts payable team which is why we offer tailored accounts payable audit services. You can also inquire about our recovery audit solutions.
The benefits of using a recovery audit service
Many large businesses must deal with the processing of thousands of suppliers from which they receive goods and services they must pay for based on the invoices received. When obtaining more than one service or product from the same supplier which is set up under a different account, things can get more complicated, and financial losses are more likely to occur. According to various studies, many companies spend between 20% and 70% of their revenue for services they obtain from various vendors while trying to manage impressing numbers of invoices they must process every year.
Most of them lose at least 1% of their revenue because of erroneous payments or duplicate invoices, according to Fraud Survey. The same report indicates that traditional accounts payable audits do not cover all the causes that generate losses, which is why many of them direct their attention to preventing them rather than chasing them. This is where an AI-based recovery audit can be of use as it works faster.
Recovery audits can help with payment accuracy
Paying suppliers implies a lot of attention in order to not miss important details, and payments must be made in a timely manner to avoid penalties, but they must also be accurate and not lose money. Unfortunately, this is where financial losses occur, but where financial recovery through audits can prevent them.
Recovery audit can help a business prevent losing millions of dollars because of issues like:
- unpaid invoices and duplicate payments;
- pricing and billing errors;
- unattained discounts and allowances.
Apart from helping in finding discrepancies, recovery audits can also be a great tool for improving operational processes by pointing out financial process errors. As these can remain undetected for years, they can cause important financial leakages.
With our recovery audit services, you can address any type of issue within the sphere of accounts payable, and more importantly, you can do that at regulated time intervals in order to keep in check and address any financial issue that can arise in the shortest time possible. A few times faster and more accurate than a traditional accounting software used for the same procedures, our program can provide real-time solutions to some of the most difficult to uncover problems.
An ongoing recovery audit can even indicate the gaps in the accounting processes and bring to light internal issues associated with incorrect vendor/supplier contracts and payment inconsistencies. It is also a great way of preventing similar issues from occurring in the future.
Recovery audits and fraud
Apart from the internal financial problems, a growing concern for many companies is the rising number of accounts payable fraud. While this is less likely to occur with small businesses that does not deal with large number of invoices, medium and large-sized enterprises are often targeted by fraudsters who find it easy to make profits at the expense of companies’ losses.
A recovery audit is one of the most effective tools to prevent financial fraud. As it delves deep into the financial processes and accounts managed by the AP department, such an audit can discover mistakes that are not as easy to observe when performing routine checkups. What may seem a simple slip can lead to significant problems and even if the amounts outsourced this way are not large, in time it can amount to thousands of dollars and important financial leakages.
We can provide tailored recovery audit services to large companies dealing with important volumes of invoices per year that have fraud suspicions or simply want to know how “healthy” their financial processes are. Our tool is simple to use and does not need supervision, as Artificial Intelligence will create a profile based on the information submitted and provide accurate results based on its findings.
In most cases, a duplicate payment can slip the accounting system when manually processing invoices or when using automated invoicing software. Duplicate payments should never be made since they can cause confusion, accounting difficulties, and even cause problems with tax returns. By using our accounts payable software, these problems can be significantly reduced.
Please watch our video on the recovery audit services we provide:
Why choose PaidAnalytix?
PaidAnalytix was created as a startup more than 10 years ago. Ever since, it has helped retail consumer companies, as well as banking institutions, thus gaining the confidence of some of the most important businesses in Europe. Through our web platform, which smartly integrates Artificial Intelligence with traditional services, PaidAnalytix:
- has helped clients recover more than 3 million euros in the last few years;
- has determined that companies can lose up to 1% of their annual revenues from invoicing errors;
- has assisted clients to save between 500,000 and 1,000,000 euros in a year;
- through our payment recovery software can identify more than 95% of the payment errors in a company since the first day of implementation.
For complete recovery audit services, do not hesitate to contact us right away. You can also rely on us for accounts payable audit services.
Radu Fertonea is the founder of Paid Analytix and Senior Manager with Executive MBA degree (Maastricht School of Management). He was director of operations at Societe Generale European Business Services, in charge with: Management of the Source to Report practice (Procurement, Accounts Payable, Accounts Receivable, Management Accounting) | Global redesign of end-to-end source to report activities | Consolidation of the Finance exercise for the European operations of Société Générale (100% coverage target by 2020) | Transition Management, Process Standardization and Continuous Improvement | People Management – team of 150+. With a broad experience in the financial field and after working with large societies which handle thousands of payments every year, came up with the idea which led to the creation of Paid Analytix.