When we talk to Finance and Procurement professionals, we often find that many are under the misapprehension that Recovery Audits are only undertaken by large Retail businesses, or that the primary purpose of the service is to identify and recover duplicate payments.
The reality is that businesses across a wide range of sectors are reaping the benefits of Recovery Audit programmes, and the scope of those programmes embraces many types of financial processes and transactions.
Here are six ways in which Recovery Audit services can be applied to your business, all of which can generate significant value, as well as providing assurance that your processes and controls are operating effectively:
- Direct buying audits across the entirety of your supply chain’s contractual arrangements including purchases of goods for manufacture or resale etc
- An accounts receivable review to verify any form of income, for example rebates, marketing support, franchise income, partnership income or other miscellaneous income streams
- Contract financial audits of key procurement agreements for indirect purchases (goods and services not for resale), to ensure that the monies you are paying out and the income received into the business is in line with contractual intent
- A health check on your indirect taxes – to recover overpaid VAT and minimise the risk of regulatory issues and penalties
- A payments processes financial audit focussed on accounts payable records to identify processing errors, credit note omissions/issues, pricing errors, omitted discounts, VAT errors and, of course, duplicate payments/invoicing.
- A deep dive review of specific processes or categories – e.g. advertising and marketing expenditures or property costs to verify rent, rates, service charges and maintenance and FM costs.
At Aveiroe our approach is completely sector-agnostic, and our team has served a wide range of organisations, of all sizes and across multiple industries.
We adopt a holistic approach to Recovery and Contract Financial Auditing, analysing our clients’ data by both process and relationship, across the entire supply chain, receivables, VAT and procure-to-pay landscapes.
By understanding your business, brands, channels to market and any areas of focus/concern we can tailor a bespoke audit programme that meets your individual needs and finds all there is to find. What’s more there’s no upfront cost and the service pays for itself many times over.
The advantages brought by Aveiroe’s independent and professional audits are clear to our clients:
“Their services are valuable financially and as a method of testing how well business processes are functioning. They have identified millions of pounds worth of items that have not been accounted for correctly……an information service that pays for itself many times over.”
Purchasing and Supply Chain Director
To learn more about how a multi–dimensional auditing approach can help improve your cash flow and profits and minimise process risk, please get in touch and let us know how we can help.
You can find our contact details here.