5 Surprising Benefits of AP Recovery Audits
The ROI hiding in your accounts payable system will surprise you.
Did you know that up to 5% of invoices contain errors – even when processed through leading financial systems like SAP or Coupa? And more than 80% of companies uncover operational inefficiencies during Accounts Payable (AP) Recovery Audits?
Among senior financial executives at large corporations, AP Recovery Audits are seen as a routine cost-recovery measure. However, an audit’s impact extends far beyond reclaiming lost funds. These AP Recovery Audits provide invaluable insights that drive efficiency, strengthen compliance, and improve vendor relationships, ensuring long-term financial and operational health.
Read on to learn these five surprising benefits of conducting AP Recovery Audits:
- Stronger Vendor Relationships
“Relationships with vendors and long-term business partners are increasingly important to corporations, non-profits, and other organizations large and small,” said Dan Berg, Senior Vice President of CPRS, which solves payment-accuracy problems for the world’s largest corporations. “We understand how important your vendor relationships are, at the individual and corporate levels. These trusted connections may have been built over years or even decades.”In one audit, a review of $2.5 million in subcontractor invoices led to a $41,488 credit memo for a CPRS client. Such instances, if left unchecked, could cast a shadow of doubt over even the most solid partnerships. Read our Silent Costs White Paper for full details.
- Improved P2P and S2P Processes
Inefficiencies in accounts payable processes often appear during an AP Recovery Audit. These might include outdated systems, inadequate oversight, or unclear procedures. “Even the best systems, like Coupa and SAP, don’t catch every error,” Berg said. “Our innovative P2P (Procure-to-Pay) and S2P (Source-to-Pay) audit technologies work with today’s enterprise systems to find both problems and solutions that help you improve processes and recover costs.”“With over 30 years’ experience, CPRS has consistently delivered a remarkable ROI exceeding 300% on our project engagements – results that truly matter,” Berg concluded.
- Increased Policy Compliance
AP Recovery Audits can reveal whether internal and external policies are consistently followed. For example, audits can uncover instances of non-compliance with vendor contracts or payment terms. These insights empower organizations to address gaps in compliance, reducing exposure to financial or legal risks.“CPRS brings a deep understanding of compliance requirements across industries,” Berg said. “We recover funds from complex sources, such as item agreements, vendor commitments, and rebates, ensuring your policies and processes align for maximum efficiency and accuracy.”
- Enhanced Financial Insights
“Recovering funds is just one part of the equation,” Berg commented. “Our AP Recovery Audits also provide valuable data that can inform budgeting and forecasting processes. CPRS combines our innovative Pearl™ software suite with the industry’s most experienced audit team to identify areas where funds are leaking from financial processes. Pearl™ leverages AI, ML, and advanced OCR technology to provide enhanced financial insights, empowering finance teams to create more accurate budgets and eliminate recurring errors.”In one audit, CPRS found a staggering 18.5% of APPROVED invoices were incorrect from one vendor. Read the Finding Labor Cost Saving Case Study to learn more.
- Expanded Culture of Continuous Improvement
One of the most surprising benefits of an AP Recovery Audit is the cultural shift these audits can inspire.“By prioritizing accuracy and accountability, organizations create a ripple effect that extends beyond the AP department,” said Berg. “An AP Recovery Audit underscores the importance of diligence and improvement, encouraging teams across the organization to adopt a similar mindset.”
Why Choose CPRS for Your AP Recovery Audit?
CPRS goes beyond traditional recovery audits, using proprietary, AI-powered technologies and industry-leading audit expertise to provide a customized solution tailored to your organization’s needs. CPRS helps its clients recover millions of dollars that would otherwise miss the bottom line and has helped companies recover billions in lost profits.
We continually push the innovation envelope. Our exceptional tech team collaborates with industry experts and business partners, including a sponsored university partnership working with leading PhD data engineers. CPRS sets the industry standard for identifying billing errors, overpayments, and other cost discrepancies, leveraging these partnerships and AI to constantly enhance our streamlined, tech-enabled process. We keep your accounts payable processes accurate, efficient, and secure.
Our Broader Capabilities
While AP Recovery Audits are a core strength, CPRS offers a wide range of services to help organizations achieve operational excellence, including:
- Contract Compliance Audits: Providing industry-leading post-pay contract audit and compliance services, reducing the burden on your internal team while ensuring accuracy at every step.
- Project Controls Outsourcing: Cutting-edge expertise in managing project budgets, schedules, and compliance.
- Managed Services: Streamlining operations with customized solutions for accounts payable, procurement, and more.
Interested in discovering how CPRS can help your organization? Contact us today to schedule a consultation and discover how our innovative solutions can elevate your operations.
Download our Case Study to learn how CPRS improves processes while recovering costs. Contact us to get tailored audit solutions for your business.