Will the Duplicate Payment Recoveries and AP Audit Detects Pay for the Time Spent in Audit?

In most cases, yes, the duplicate payment recoveries detected by an AP audit will more than pay for the time spent in audit.

Here's why:

  • High ROI: AP audits often have a high return on investment (ROI). The amount of money recovered from duplicate payments and other errors typically exceeds the cost of the audit itself.
  • Contingency Fees: Some audit firms work on a contingency fee basis, meaning they only get paid a percentage of the funds they recover. This further reduces the risk for the company being audited.
  • Efficiency: Modern audit techniques and software can analyze large volumes of transactions quickly and accurately, making the audit process more efficient and cost-effective.1

However, there are some factors that can influence the outcome:

  • Scope of the audit: A broader audit scope covering more years or transaction types will naturally be more expensive.
  • Complexity of the AP process: If the company's AP process is particularly complex or poorly documented, the audit may take longer and cost more.2
  • Prevalence of errors: The amount of duplicate payments and other errors found will directly impact the amount recovered.

Overall: While there's no guarantee that an AP audit will always pay for itself, it's generally a worthwhile investment. The potential for recovering significant funds and improving AP processes makes it a valuable tool for many organizations.

So a Fresh Set of Eyes Reordering my AP Could be Free?

So a Fresh Set of Eyes Reordering my AP Could be Free?

Top of Page

It's possible that a fresh set of eyes reordering your AP processes could essentially be free, but it's not guaranteed. Here's how:

Scenarios where it could be "free":

  • Internal Audit: If your company has an internal audit department, they might be able to conduct an AP audit as part of their regular duties. This wouldn't involve any direct external costs.
  • Software Implementation: Some AP automation software vendors include an audit as part of their implementation process. They analyze your existing processes and identify areas for improvement, which could lead to the discovery of duplicate payments.
  • Contingency-based Audit: As mentioned earlier, some external audit firms work on a contingency basis. They only get paid a percentage of the duplicate payments they recover, so if they don't find anything, you don't pay anything.

Scenarios where it might not be free:

  • Hiring an external auditor: If you hire an external audit firm that doesn't work on contingency, you'll have to pay for their services regardless of the outcome.
  • Internal staff time: Even if you use internal resources or a contingency-based auditor, there will be some cost in terms of staff time spent on the audit.
  • Software costs: If you decide to implement AP automation software, there will be costs associated with the software itself, even if it includes an audit.

Ultimately, whether or not it's "free" depends on your specific circumstances and the approach you take.

Here's what you can do:

  • Explore internal options: Check if your internal audit department can help.
  • Get quotes from contingency-based auditors: See what kind of fees they charge and what their track record is.
  • Consider AP automation software: Evaluate the benefits of automation and whether it includes an audit as part of the package.

By carefully considering your options and doing your research, you can maximize the chances of getting a fresh perspective on your AP processes and potentially recovering significant funds without incurring substantial costs.

If an Auditor Gets 20% of Value Recovered, I Get 80% and a Free AP Audit

If an Auditor Gets 20% of Value Recovered, I Get 80% and a Free AP Audit

Top of Page

That's a very good way to look at it! You're essentially getting a free AP audit with the potential for significant financial gain.

Here's a breakdown of why this is a favorable arrangement:

  • No upfront cost: You don't have to pay anything for the audit itself. The auditor takes on the risk of not finding any recoverable funds.
  • Shared gains: You still receive the majority (80%) of the recovered value, which can be a significant amount.
  • Improved processes: The audit can help identify weaknesses in your AP processes, leading to improvements that prevent future errors and save you money in the long run.1
  • Focus on recovery: The auditor is incentivized to find as much recoverable value as possible, as their fee depends on it.

However, there are a few things to consider:

  • Auditor selection: It's crucial to choose a reputable auditor with a proven track record. Look for experience, expertise, and positive client testimonials.
  • Transparency: Ensure the auditor is transparent about their findings and methodology. You should have a clear understanding of how they arrived at the recovered amount.
  • Contract terms: Carefully review the contract with the auditor to understand the scope of the audit, the fee structure, and any other relevant terms and conditions.

Overall, engaging an auditor on a contingency fee basis where they take a percentage of the recovered value can be a highly beneficial arrangement. It offers a risk-free way to identify and recover lost funds while potentially improving your AP processes.

Which Auditors Specialize in AP Recovery?

Which Auditors Specialize in AP Recovery?

Top of Page

You're looking for UK companies specializing in duplicate payment recovery? Here are a few leading names, with some details about their services:

  • Twice2Much: They claim to be the fastest-growing global provider of duplicate payment recovery services. They've been around since 2003 and likely have extensive experience. You can find them at www.twice2much.com.

  • Caatalyst: Caatalyst offers a range of financial recovery services, including duplicate payment audits. They use sophisticated software to identify overpayments and seem to have a strong focus on data analysis. Their website is www.caatalyst.com.

  • S2M Profits: Founded in 2006, S2M Profits provides a variety of financial analysis services on a contingency basis, including duplicate payment recovery, expense recovery, and contract compliance. They emphasize personalized service and focus on optimizing your bottom line. Their website is www.s2mprofits.co.uk.

  • Liberata: Liberata offers duplicate payment recovery as part of their broader financial services. They seem to work with both public and private sector organizations. You can learn more at www.liberata.com.

Key things to consider when choosing a provider:

  • Experience and track record: Look for companies with a proven history of successful recoveries.
  • Technology and methodology: Inquire about the software and techniques they use to identify duplicate payments.
  • Fees and contract terms: Understand their fee structure, whether it's contingency-based or not, and any other relevant terms.
  • Client testimonials and reviews: See what other clients have to say about their experiences with the company.

Check out the websites of these companies and perhaps reaching out to them for more information or a consultation.

Which Companies Include the Recovery Process?

Which Companies Include the Recovery Process?

Top of Page

You're right to ask about the recovery process! It's a crucial part of the service, and not all companies handle it the same way. Here's what I've gathered about the companies I mentioned, plus a few others:

Companies that seem to include the recovery process:

  • Twice2Much: They explicitly state on their website that they handle the entire recovery process, from identification to collection. They emphasize their "no recovery, no fee" approach.
  • Caatalyst: While their website focuses on identification and analysis, they likely assist with recovery as well.1 They mention working with clients to "recoup overpayments," suggesting they're involved in the process.
  • S2M Profits: They highlight their "end-to-end" service, which implies they handle recovery. They also mention working with clients to "reclaim lost profits," indicating involvement in getting the money back.
  • FRP Advisory: This is another UK firm specializing in recovery services, including duplicate payments.2 They have a dedicated team for this and seem to handle the entire process. You can find them at www.frpadvisory.com.

Companies where the recovery process may be less clear:

  • Liberata: Their website is less specific about their involvement in the recovery process. They may focus more on identification and leave the actual recovery to the client.

Important questions to ask potential providers:

  • What does your recovery process involve? Get a detailed explanation of their steps, from initial contact with vendors to final payment collection.
  • What is your success rate in recovering funds? Ask for data or case studies demonstrating their effectiveness.
  • How do you handle disputes with vendors? Understand their approach to resolving disagreements about alleged overpayments.
  • What are the timelines for recovery? Get an estimate of how long the process typically takes.

By asking these questions, you can ensure you choose a provider that offers comprehensive support throughout the entire duplicate payment recovery process.

 

 

 

Add comment