Why do we need an accounts payable or sales tax audit?
Payment errors are very common. Your staff manages multiple, local, and possibly national suppliers. Weaknesses in systems, changes in staff, overlooked credit memos, discounts not taken, and ever-changing tax laws lead to payment uncertainties. Only a specialist – motivated by recoveries and armed with knowledge and tools – can identify and recover substantial lost revenue.
How much do you generally recover from payment errors?
OPR typically recovers at least $1,000 for every $1 million of a company’s gross annual revenue. A $100 million company could expect a $100,000 recovery.
What types of payment errors do your audits identify?
OPR routinely identifies and recovers Duplicate Payments, Sales and Use Tax Exemptions not Taken, Missed Discounts, Payments to Wrong Vendors, Missed Vendor Credits, Pricing Errors, Deposits or Prepayments not Deducted from Final Billings and Misinterpretation of Contract terms.
What is the time investment required from our staff?
The only time investment is approximately 8-12 hours guiding your systems department through an electronic payment data extraction. Once on-site our audit team just asks for a brief orientation to systems and files, and then our auditors work independently, with no disruption to your operation.
What is the cost of your services?
We provide our services on a contingency fee basis. We get paid only once funds are recovered and deposited to your account, or once a vendor’s authorized credit memo has been applied to your account. If we do not recover any overpayments, no fees are due. You will receive a final report of your Accounts Payable payment processing operation.
Will your audit work conflict with our strong vendor relationships?
No. We will support the good rapport with your vendors as follows:
- You will authorize all requests for recovery of overpayments.
- You will approve all forms of communication with your vendors.
- Your vendors will be educated on tax code interpretations and weaknesses in their billing processes.
We recently contracted with a firm to conduct an audit similar to your service. Why do we need another audit at this time?
Some firms specialize in payment processing audits. OPR is a comprehensive audit service. You may be contracted with a firm reviewing tax code compliance without the benefit of reviewing all Accounts Payable activity.
When should we have an Accounts Payable audit and how often?
Ideally, our service is performed once your annual financial audit is completed. Initially, we would audit the most recent four years and then schedule an annual audit cycle.
How much time is necessary to perform the audit?
OPR commits the necessary time to complete a thorough review and provide substantial recoveries. Our audits typically include both off-site data mining components and an on-site examination of physical documents. Our staff works efficiently and smart so that there is no disruption to your operation.
What about Confidentiality?
OPR respects any limitations you may put on classified documents and information. As professionals, we guarantee absolute confidentiality of all your business records.