When you’re analyzing expenses, it makes sense to start by taking a look at who you are paying and what you’re paying them. An accounts payable audit can help you get a handle on your bills and present a clear picture of where your money is going.
We recently talked about auditing your accounts payable for fraud, but even if you don’t suspect fraud, we recommend hiring an independent auditor to take a closer look at your accounts payable expenses.
Why Audit?
What is the benefit of an accounts payable audit? An AP audit can help you find the following things:
· Duplicate payments
· Overcharges
· Missed discounts
· Unclaimed credits
· Vendor contract compliance
· Uncashed checks remaining on your books
· Other overlooked expenses or payments
An auditor will compare invoices, canceled checks, and account statements to make sure nothing crucial has been missed.Closely examining these areas can make a noticeable impact on your company’s profitability.
An accounts payable audit will also review your accounts payable process to make sure it follows your company’s guidelines and generally accepted accounting principles.
How to Begin
A proper accounts payable audit should be conducted by an outside agency that has no affiliation with your company. This guarantees a non-biased examination of your records, and is another protection against fraud.
Accounts payable auditing is one of the services Silverback provides to help your company achieve greater profits. Contact us to learn more about our cost management solutions and how they can increase profits for your business. We’ll dig deep to help you find the money you’re missing.
