Category: Finance

Knowing Your Procure To Pay Risks Makes Good Financial Sense

How much oversight do you really have over your accounts? You might have a fair idea of what is coming in and going out every month, but what do you know of the detail and your procure to pay risks? The fact is that it would be unfeasibly time-consuming to have every payment you make or receive checked against invoices, statements and other paperwork. That’s why duplicate payments, fraud and other glitches can cost businesses so much. The more transactions you make, the more money you are likely to be losing due to payments that are unnecessary. An accounts payable audit helps you to find where the leaks are in your system, throwing up warning signals when it seems like you have paid clients or suppliers when you shouldn’t have done. Recovery audit software allows you to gain back what you have lost over time.

Often the problem will be innocent enough. The average invoice might have something like twelve fields of data in it. Fill out or copy one of these wrong and the result could be an inaccurate payment – perhaps too much, perhaps too little, perhaps something that has been paid already. The mistake could have happened at your end or when the invoice was raised. However, in some cases it’s more dishonest than this. Unscrupulous suppliers might double-send an invoice, knowing that you don’t have the systems in place to catch such tricks. The amount might be familiar, and so it goes through the accounts without a second thought.

Duplicate payments and other types of overpayment can add up to a significant fraction of a firm’s turnover. If you engage in high volumes of low-value transactions, then even a small proportion of these will start to make a dent in your profit margin – and could mean the difference between sinking and staying afloat. Carrying out an accounts payable audit will often pay for itself the first time you do it. However, you should learn about procure to pay risks as soon as possible, because the longer you leave it the lower the chances of getting back your money. Companies go out of business, and individuals die or move away. If this has happened then realistically there is not a good chance of being compensated. Perhaps more importantly, you need to know what is going wrong now – it won’t just be past mistakes. There may be instances of ongoing fraud you need to protect yourself against, or cases where repeated problems occur month after month, and cost you more and more as you go on.

Please visit https://www.fiscaltec.com/ for further information…

Overpayments, Missed Tax Rebates – what can go wrong in Accounts Payable?

In the 1970s, many enterprises expanded or merged to form complex corporate structures. At the same time, many began to outsource more of their functions than usual, developing a need to process hundreds, sometimes thousands of invoices as well as the regular pay roll functions. To solve this problem, the tradition of regular accounts payable audit was born.

Nowadays, most companies of a certain size rely on outsourced specialist companies to create functional and efficient accounts payable audit and reduce or, preferably, eliminate the revenue loss that always comes with overpaid invoices, duplicate payments, misapplied tax, unclaimed rebates, inaccurate currency conversions, VAT and discount adjustments, and all the other little things that can go wrong when running a big and complex company with a robust financial operating system. Because although a couple of incorrect payments to a contractor or supplier may not seem much on their own, they have an insidious way of adding up sometimes to millions of dollars.

Traditionally, a recovery audit is undertaken at regular intervals to correct any miscalculations, errors or even deliberate fraud attempts by contractors, suppliers or staff. These audits are undertaken after payments have been completed, and often end up considerably increasing a company’s bottom line. Usually a recovery audit, as well as identifying specific mistakes, will also spot problems in management or process which may be allowing these mistakes to occur. Then, the workforce are trained and systems changed in an attempt to reduce the mistakes made in compliance and correct payment.

Now, many of these accounts payable suppliers use recovery audit software to complete a constant and efficient survey of effectiveness throughout the year. Modern recovery audit software comprises a set of tools which can be operated by accounts payable departments to monitor compliance and weed out incorrect payments or duplicate payments. These analyse payment history through web-based on-demand systems which monitor transactions deeply.

With this kind of transaction monitoring, customers are discovering a large number of historical overpayments – which can be requested, either by the accounts payable company or, if preferred, by the company itself. Patterns can also be revealed which may indicate a problem in processing systems, an inefficient or even fraudulent staff member, or a consistently dishonest contractor.

Drilling down into data electronically removes human error and provides clear and readable evidence of patterns of fault, error or simply systems that are outdated and can be altered to see an increase in bottom line profit. No wonder that so many managers are adopting this new recovery audit software as a key service for their businesses!

Please visit https://www.fiscaltec.com/uk

The experts choice for Accounts Payable Audit support

As with every change and with the crossing of each new frontier, the constant development of business – and the constant revolutionising of accounting technology and multiplication of business models and practices – presents companies with new challenges and new problems. Your Accounts Payable department is now a greatly more complex beast than its predecessors of even a decade ago were: and it is charged with weighty and serious new responsibilities. What’s more, any increase in the size of your AP department, let alone in its complexity, inevitably opens the door to an increased range of faults: and they can add up. The new complexity and range of the ways in which AP departments receive payments has created mind-boggling new tasks – and this means new dangers of things falling between the cracks. In a more complex, modern business, old problems like fraud, duplicate payments and overpayment still loom large, but in new ways.

Stamping out everyday mistakes like duplicate payments, faulty procedures or even failures to get the most out of the software that you use demands effective self-auditing. In order to really get to grips with the challenges of a modern and expanding AP operation, you need an outstanding Accounts Payable audit system. That’s where Fiscal Technologies €™AP Forensics software service comes in. AP Forensics is an easy-to-use system which can give you an oversight of your whole AP operation from A to Z.

The technology choices that businesses make are now crucial to the success of your accounts payable audit operation. The recovery audit software that you use has to be absolutely top of the range or else it is simply useless. Fiscal Technologies’ accounts payable audit software package AP Forensics falls firmly into the former category. One of AP Forensic’s greatest virtues is its simplicity. The system is designed to be as straightforward and intuitive for AP professionals as possible, so that information gleaned from your AP Forensics audit can be quickly converted into effective corrective action.

Accounts Payable Audit software isn’€™t the only important weapon in Fiscal Technologies’ armoury. Recovery audit software, designed to assist with recovery of money lost through overpayments or other errors which are detected after the transaction has been completed, is a vital tool: AP Forensics has the software solutions that are needed for effective recovery audits, as well as audits of your AP departments procedures.

Fiscal Technologies€™ decade of experience in the AP field points to the fact that if your staff are not adequately motivated; or if they are not suitably prepared for the fast pace of technological and organisational change, then even the most well-meaning management strategies for improving AP will leave your team feeling shell-shocked rather than empowered. AP Forensics is the software package that you need that can deliver the clear information and hard facts that AP teams require to navigate their way confidently through the changing AP environment.

Please visit http://www.fiscaltec.com/uk

Bacs payments allow you to automate your accounts processes

Since bacs came onto the scene in the late 1960s, it has grown in popularity until now, some 44 years later, when it is utilised by the majority of organisations in the UK. Bankers automated clearing services allows financial transactions to be processed electronically, meaning that cash and cheques are no longer necessary for the vast number of big payments – anything from wage packages to bills. Bacs software allows businesses, charities and other organisations to enjoy the benefits of this, which are numerous. Consequently, those groups which do not make bacs payments are becoming fewer and fewer in number. One of the biggest benefits of bacs is security. Transferring funds electronically means that money does not have to be handed over in person, and cheques do not have to be filled out or cashed. The potential vulnerabilities of online processing notwithstanding, this makes for safer payments. This is of particular use to employers with large numbers of staff; pay day would require keeping significant quantities of cash on the premises, or else writing large numbers of cheques.

Speed is another benefit. Bacs clears within a maximum of three working days, but in reality it is usually much faster. FPS (faster payments service) is practically instant, meaning that money appears in the recipient’s account almost immediately after it has been sent.

But one of the most significant benefits to businesses and other organisations is the automation of accounting processes that bacs allows. Bacs software can be integrated with accounting software. This results in a proportionally higher degree of predictability for finances and a better oversight of cashflow. Payments can be scheduled for a given point in the month – pay day being the perfect example – and so surprises due to unpredictable payments are less likely to occur. This means that overdrafts and interest charges are less likely to be used and had.

All in all, there are many reasons why organisations have used bacs payments and are continuing to do so. The chief benefit of bacs comes down to convenience – and the peace of mind that results from that. Bacs software allows payments to be automated, as well as being done safely and swiftly. Speed is still occasionally an issue, but FPS has avoided this in the vast majority of cases (some 95 percent). In any case, CHAPS and SWIFT processing are available for an additional fee, and these have a guaranteed (same day) time frame.

Please visit http://www.bottomline.co.uk/ for further information about this topic.

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Accounts payable audit systems can protect from fraudulence and error

Is your organisation paying more than it needs to? Look to world-class accounts payable audit software to detect unnecessary duplicate payments, as well as invoicing errors, compliance issues and supplier fraud. Recovery audit software can be used to help your Accounts Payable team in their efforts to control and improve processes.  Using this software takes away the need to employ costly Recovery Auditors to identify and recover duplicate payments. Instead, by empowering your own Accounts Payable teams with the right tools, costly auditor fees are cut and internal processes are improved.

There is a significant risk that medium and large organisations pay their supplier invoices twice. Duplicate payments are one of various overpayment errors that go undetected in the accounts payable process, and usually the most pricey. The total amount overpaid, one way or another, can run into many thousands of pounds or more for small or medium-sized businesses.

If you are uncertain whether this is an issue for your organisation, recovery audit software providers can usually provide proof with an AP health check that is often offered for free to qualifying organisations. This check consists of a partial analysis over several days to demonstrate any errors, compliance issues or supplier fraud within your system. This evidence then forms the basis for a sound business case.  The benefits of using this software are chiefly cutting unnecessary costs – which is no small benefit. It is important to act quickly as the opportunity of recovering extra payments drops each month. This is because every month some of your suppliers go out of business, merge or get bought. Old invoices cost more to recover, so cost increases with each month, too, and so it makes sense to secure a health-check as soon as you can in order to act on any inconsistencies.

The software is easy to use, and requires no special training. In fact, free online training is often offered by the provider. Tailored specifically to your business’s needs, fraud and risk are reduced and profitability increased. When put into place before a payment run, the software prevents unnecessary payments and therefore avoids the high expense of recovering money externally or internally.

For effective prevention and protection from fraudulence and error, improvement of your cost efficiencies and current AP systems, recovery audit software provides the answer. accounts payable audit programmes can process all past payment data for duplicate payments, helps you comply with internal and external guidelines, and protects valuable working capital – all at a low cost of ownership.

Please visit http://www.fiscaltechnologies.com/ for further information about this topic.

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Bacs software prioritises confidentiality

It doesn’t matter what kind or what size of business you are in, it goes without saying that it has in common with all businesses the need to make and receive payments. Indeed, the very definition of the word business implies the practice of acquiring or selling goods or services. The most commercially successful businesses tend to be those that make highest number of exchanges; for those with their sights set on topping the market, buying and selling the right commodities at the right price becomes an art to be repeated as frequently as possible. With an increased number of exchanges comes an increased level of responsibility, however, clients will expect to pay for and receive their goods quickly and without encountering mistakes or delays. bacs software can help meet these clients’ demands by minimizing errors and time lapses because, quite simply, BACS payments are both efficient and almost infallible. There was once a time when BACS were synonymous with slowness – sometimes taking over three days to clear. Now it is a different story; these automated payments represent one of the fastest and most secure methods of exchanging money.

The improved service provided by BACS means that increasing numbers of businesses are using this payment method to conduct the transactions they are involved in. The fact that one improvement has been in security has been a key factor in this increase: optimum levels of security really are paramount in business because not only do they keep businesses’ secrets confidential and their revenue protected against fraud, they also safeguard the banking and personal details of clients.

Customers who feel appreciated by the businesses they deal with are much more likely to use a company’s services or invest in their goods again. Indeed, in the opposite situation clients who feel badly treated are likely to complain and blight the reputation of a business. Altogether, businesses and their clients are advised to use BACS software to make and receive their BACS payments. Anything other than bacs has simply not stood the test of time and proved itself to be efficient.

Please visit http://www.bottomline.co.uk/ for further information about this topic.

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CIS payroll requirements have to be adhered to in construction

If you desire to continue to work as a self employed or freelance contractor, it is a good idea, if you have not done so already, liaising with a contractor umbrella company to make use of the payroll services provided by these companies. Not only will you get cis payroll benefits (if you work in construction), but you will have a higher level of stability this way, which is especially valuable at present. Even in hard times it is still desirable to be self employed, provided that there is enough work available.

One reason for this is that self employed traders are often required to pay a smaller amount in national insurance contributions to HM Revenue & Customs. Another is that by being self employed you can to offset your work-related expenditure against the income tax that you owe on your earnings. As well as that, of course, you have the final say over what contracts you take on, or decline to take on, which can be important, especially to freelancers with more than one profession: if times are going well in a contractor’s main profession, he or she might reject contracts in his or her secondary profession until there is a dip in trade in the first. In other words, self employment is a fine way to attach new strings to your bow.

Freelancers and sole traders from a whole range of different industries use the services offered by contractor umbrella companies. Whether you work in logistics, construction, teaching, Information Technology Services, or even social care, making use of payroll services can increase your earning potential and save you money at the same time. In addition, it can simplify the complex procedure of ensuring that you are CIS compliant, according to the rules and regulations of HM Revenue & Customs.

A contractor umbrella company can provide experienced freelance contractors to its clients at short notice, enabling these clients to temporarily increase their staff numbers in order to complete projects, without all of the associated hassles that they get with fixed term employees, such as sick pay, NI, maternity or paternity leave, and so on. In the construction industry, however, all transfers made to sub contractors must be made in compliance with the Construction Industry Scheme regulations (cis payroll). Umbrella companies can provide payroll services to sole traders, pending a successful registration process, verifying, among other things, the sub contractor’s eligibility to work in the UK. They will have a system in place to process payments between themselves, their clients, and their sub contractors.

Please visit http://www.liquidfriday.co.uk/ for further information about this topic.

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