Accounting anomalies : a concern for every compagny
On average, one invoice in a thousand is paid twice. To these double payments can be added other types of less common errors : currency errors, prepayments not recovered, credit notes entered as invoices, input errors affecting amounts. Added up over several years, amounts lost as a result of such errors can be significant : up to 0.5 % of annual purchases.
Generally speaking, no organisation is exempt from overpaying its suppliers. There are specific risk factors however :
- A change of system or organisation
- Increased productivity targets
- Outsourcing of invoice processing abroad
- Occasional purchase without order / order issued after receipt of the invoice
- Lack of staff training (for example during holiday periods)
Identifying supplier overpayments with ABBD
Benefits of doing a supplier overpayments audit with ABBD
Over several financial years, the lost sums due to supplier overpayments can amount to several hundred thousand euros and have a significant impact on the result. A supplier overpayments audit brings concrete hard savings and P&L improvement.
In addition to recovering cash, a supplier overpayments audit can improve internal practices in order to avoid the recurrence of identified anomalies. Our end-of-audit recommendations are very often followed by the implementations of measures such as new trainings to identify key moments in the process when the staff should be particularly attentive.
Last but not least, our remuneration is based on a success fees principle, calculated on the amounts of money our client actually recovers. This also allows our clients to start an audit without any incurring costs.
Supplier overpayments audit process
For us, an audit must be carried out with as little inconvenience as possible for the client. That is why our consultants work remotely in our own offices on accounting extractions from the audited company. We have developed for more than 15 years our own datamining and artificial intelligence (AI) software : Exaus. It exhaustively analyses all accounting data and detects anomalies. Our consultants then countercheck the potential double payments with the invoices (either remotely, or by spending a couple of days at our client’s office where they work in complete autonomy, without disturbing the company teams).
We have also developed our web exchange platform Exaus to allow clients to access and validate the results of the analyses in real-time directly online. Thanks to different dashboards, reading and confirming the results is easy, as well as following the progress of the audit.
Following the accounting analysis, an ABBD dedicated team can recover the identified supplier overpayments. Composed of 5 experienced consultants, our recovery team is specialized in amicable cash collection from suppliers.
In average, 80 % of identified amounts are recovered within two months ; the remaining 20 % are recovered in the following two months.
A Supplier overpayments Recovery Audit can be carried out in parallel with the lost deductible VAT Recovery Audit.