Frequently Asked Questions

What is an “Accounts Payable Review”?

What are the benefits to me as a client?


How will it affect my current workload?


Why would I want to do this?


We already have a very tight process.

How much does it cost?

Will this take a lot of my staff’s time? 

What are the benefits to my Company?


What is the potential for dollar recovery?

What time frame do you review?

Should I be worried about what you find?

What if I do nothing?

 

 

1. What is an “Accounts Payable Review”?
This is a thorough review of your disbursement documents by our team to recover money that has gone out as overpayments. The process includes all AP dollars (excluding payroll or expense account), contract compliance and sales and use tax.

APRI uses a combination of electronic data gathering and on-site review to perform a very thorough review of your disbursement documents.

2. What are the benefits to me as a client?
There are only two possible outcomes of an A/P review, both benefit your company greatly:

  • The review is completed and no significant recoveries are made. Client now has outside verification that AP procedures are working well.
  • Moderate to significant recoveries are made. Client recovers CASH that already went out as overpayments, and has taken a proactive step to validate and improve AP procedures, preventing future occurrences.

APRI will do all the work from discovery to recovery.

3. How will it affect my current workload?
APRI will be looking at the previous 3 years AP files. We gather the data up front for analysis. We start the on-site part of the review with a 45 minute opening meeting and generally do not require more that 1 hour per week of client staff time. This may include AP, purchasing and/or manufacturing staff. Most of our internal (client) and vendor contact will be handled via email. When on-site we pull and return our own files and require very little client involvement in our AP review process.

4. Why would I want to do this?
This is a chance to validate accounts payable processes and recover your company’s money that has already gone out without any downside risk.

Our findings are most often within the acceptable range (GAAP .05% to .2% of AP), but can add up to substantial dollars back to your company depending on the magnitude of your accounts payable.  In addition, this process will help uncover and prevent future errors.

Any recovery is a positive contribution to your cash flow and gives AP a chance to bring dollars back in house.

5. We already have a very tight process.
Most clients believe they have a tight AP system and they do. Many AP managers are concerned that our findings will reflect on them. The reality is that AP reviews result in findings of accounts payable overpayment errors in a very narrow range (.05% to .2%) of total AP dollars.  Most occurrences also are at a specific point in time i.e. 3 months and they have already been corrected.

6. How much does it cost?
This is a contingency-based process, therefore NO RECOVERY = NO COST to our client. APRI is paid only when you have access to the recovered money.  This is a self-funded process with minimal client cost or involvement.

This is money that will be lost after 3 years if not recovered.

7. Will this take a lot of my staff’s time?
APRI will gather AP data files up front. When we come on site we have a short opening meeting to let people know we are going to be there, and handle routine office items, work hours, file locations etc.. Once on-site work begins, we will need not more that one hour a week of client staff time.

This is a project for APRI not our client.

8. What are the benefits to my Company?

  • Dollars recovered will improve client’s profitability.
  • Provides system / process validation.
  • Will be a positive contribution to client cash flow.
  • Gives AP a chance to bring cash back in house.

9. What is the potential for dollar recovery?
Although we never know for sure, we do look at indicators such as rapid growth, ERP system change, divisions or company expansion thru acquisition and changes in purchasing and/or AP personnel as reasons for possible errors to occur. Industry averages will put the range at about .05% to .2% of 3 year gross AP dollars reviewed.

10. What time frame do you review?
Generally APRI reviews the 3 previous years closed books, but we can tailor the time frame to meet client specific needs.

11. Should I be worried about what you find?
NO.  Our findings will range in 30 plus areas such as pricing errors (purchasing) and sales tax errors (mfg / purchasing), and are generally comprised of numerous immaterial errors that occur when processing huge volumes of transactions.

Most errors found are single occurrences, such as duplicate payments, or happen for a short period of time (sales/use tax) and have since been corrected. APRI will go back and recover the overpayment.

APRI simply adds value to your AP staff effectiveness.

12. What if I do nothing?
The risk of doing nothing means that money that has gone out as overpayments (and some has!) will be lost after 3 years. You also lose a chance to test and validate AP and contract compliance processes.  

Remember, this is all done on a contingency basis and APRI does all the work.

 

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