Annual Recovery Audit Keeps Money Finances In Control

It is an economic truth that companies that do well develop in complexity over the years, which also fuels the margin for error. It is also a modern fiscal truth that companies are finding it increasingly necessary to identify new ways to increase profits during these financially difficult times. For both these reasons, a recurring method of identifying duplicate payments using recovery audit software has become an ever more integral part of normal business practice. The overall result of a recovery audit is an immediate improvement in profit margins as it discovers lost profits and acts to obtain their retrieval and this acts towards keeping the ‘bottom-line’ healthy.

Although the main role of a recovery audit is to recover lost profits through duplicate payments, an important consequence is its job in enhancing business practices and as a consequence assisting to lower outgoings. In the audit of businesses accounts processes, a recovery audit will also analyze why an overpayment was made and how it was allowed to be made. This is the beginning step in strengthening efficiencies in the payments chain. Increased efficiency leads to minimized costs and increased profit margins for companies.

There are a number of problems that recovery audit software and a recovery audit can discover that contribute to duplicate payments. For many companies, it’s simply a product of large transaction volumes and having multiple clients. The issues of scale mean that even a 0.1% error rate can mean thousands and even millions in lost profits for a corporation. Other issues can also be caused by recent, specific events that have happened for the company such as quick growth or company mergers, which can result in, for example, additional systems that don’t integrate properly and which can lead to errors. In this instance, the issue is a one-off one and has the notable advantage of only needing a one-off fix in order to fix.

A recovery audit team using professional recovery audit software can also identify deeper, on-going issues that can lead to continued duplicate payments. These are regularly issues concerning a company’s business processes such as inadequate controls, unreliable communication, a lack of standardized procedures and inappropriate employee training. All of these are contributing problems to a growth in duplicate payments and will demand a workplace to reflect on its workplace culture and potentially a permanent change in normal business practice and procedures in order to address it.

A recovery audit is usually started through the addition of a piece of recovery audit software. This can be the most inexpensive and easiest way to identify duplicate payments, especially for small-to-medium companies. A range of recovery audit software is available on the market, with differences in cost and complexity in order to cater for every workplace.

For those businesses with complicated pricing structures, a notable amount of buyers or are just needing a more in-depth and thorough audit in the hands of specialists, a trained recovery audit team will demonstrate the greatest value for money. These analysts, alongside their software, will methodically analyze where duplicate payments are being made and can go one step further by proposing answers to any detected errors.

When picking your recovery audit software, it’s crucial to take into account an assortment of issues. The first thing is if the audit software is compatible with your accounts software. This is a critical consideration in order to avoid unanticipated computer errors that can sometimes create problems. More factors to bear in mind is if the price of the software represents good value for a business of your size, how the software aims to achieve its objective and what its drawbacks are. If you choose to go with a recovery audit company, you will find that they typically use specialized software that has been created by the audit business itself. Therefore, the audit business should be completely familiar with the software and can implement it seamlessly into a business system while an audit is being conducted. A recovery audit team will also employ data technicians and analysts who can see what the software can not and, most crucially, advise a business on solutions to address any issues that were contributing to extra duplicate payments.