From Profit Recovery To Profit Retention: How Best-In-Class Firms Strengthen Accounts Payable Through Intelligent Invoice Reconciliation
Many companies today rely on "Post-transaction recovery" to audit, reconcile and recover mistaken vendor payments. However, this blunt-force, after-the-fact approach to invoice reconciliation is extraordinarily costly and wasteful. Due to process inadequacies in their Accounts Payable (AP) departments, they are cutting checks that are not owed, paying phantom bills and contributing to various forms of "Profit leakage." Indeed, they are missing prompt payment discounts, encouraging maverick spending and leaving themselves vulnerable to fraud. In some cases, they are creating an embarrassing image problem with their suppliers by handling their AP processes in an unprofessional manner. Most significantly, they are absorbing the opportunity costs of recovering their escaped capital.