With businesses having been battered by everything from the COVID-19 pandemic, global supply shortages to talent shortages and record inflation, it’s now more important than ever to ensure that you’re receiving all the money you’re owed – and not paying more than the agreed price for the products or services you use.
Yet for complex businesses who have hundreds of different suppliers and service contracts, or retail goods with a variety of different product categories and rebate agreements, cross-checking contracts and invoices to ensure you’re not leaving valuable funds on the table is an almost impossible task. Once you add in staff turnover, business and compliance changes, Profectus’ Executive Director, Matt Lally, says it’s no wonder errors and overcharges get routinely missed in the procure-to-pay process.
“Our data shows that at least 3.5 errors occur in every 10,00 AP transactions and 1 in every 50 trade deals negotiated are calculated and claimed incorrectly,” Lally says. “It’s no one’s fault in particular, it’s just when you have so many moving parts that are almost impossible to track, errors and mistakes are bound to happen.”
“Across a business that has hundreds if not thousands of suppliers, contracts or products, this can add up to a significant loss of income every year – we’re talking millions for some of clients.”
While this money certainly is recoverable, Lally explains that new research detailed in Profectus’ recently released Missed Income Industry Insights Report, reveals that time is of the essence when it comes to recovery and prevention is far better than cure.
“I won’t give all of the report’s secrets away, but let’s just say, unlike fine wine and cheese, missed income certainly doesn’t age well. Our data clearly shows that the longer a company waits to recover the claim, the harder it is to recover.”
“Add to this the fact that we’re seeing more and more small-medium businesses, who contract and supply to large organisations, collapsing in today’s tough economic conditions, relying solely on recoveries is a risky corporate compliance strategy,” explains Lally.
The good news is, Profectus offers a range of software solutions that automate your AP audit and compliance process, highlighting errors and identifying missed income before you pay your invoices – not after, making any errors or overcharges far easier to rectify and mitigating future risk.
To freely download the full industry report or learn more about Profectus’ leading audit and compliance technology solutions, visit the Profectus website: https://www.profectusgroup.com/get-your-compliance-in-check