3 Pitfalls of One-Time Audits
How is your company recovering any overages on paid invoices?
Typically a yearly internal inventory audit is performed to see what is missed over the last 12 months. While there are benefits to one-time auditing it is important to be aware of these three major pitfalls to ensure you are maintaining full optimization of your operations and employee output:
1. Poor Tracking Capabilities
Earlier this year, the Pentagon lost track of $800 million dollars in construction projects found by an internal audit firm. They also estimated that more than 30 black hawk helicopters in their fleet were not recorded properly. This could have been easily avoided if monthly audits were performed and an effective inventory management system was in place to account for these items. While The Pentagon is an extreme case, it can still be applied to the pitfalls of one-time auditing.
2. Small Window to Make Refund Requests
Most Telecom and Utility vendors are shrinking the time that you can request refunds as you only have UP TO 6 months to request any credits if overages are found. Many of them now state on the invoice that if you find an error, you must report it in the month that it is billed, in other words, before you pay the bill, or they will not give a refund at all. Due to the 6 month window, audits need to be done at least twice a year, preferably on a monthly basis to receive all possible credits owed to you.
3. Sharing Refunds
You are potentially leaving thousands of dollars on the table by sharing what you do find using a one-time audit company which is typically 35% of the refund or cost overcharges identified! Once you recognize the overage, the refunds found have to be shared with the audit company, which defeats the whole process of getting back 100% of what is owed to you. However, if you decided not to go with an internal audit company to avoid sharing those refunds, you may be concerned with the amount of time your staff has to perform these audits on their own. To extensively check each line item on the invoice to ensure accuracy can be a tedious process that requires pristine attention to detail.
RadiusPoint, a telecom and utility expense management firm can be your trusted partner utilizing their cloud-based SaaS, ExpenseLogic™. It is the powerful expense management software you need to eliminate countless hours of identifying expensive billing errors and fees automatically. Our services will free your IT staff and audit the invoice while allocating the costs to the correct departments.
Having real-time access to flagged overages on an invoice will allow us to request 100% of refunds in the same billing cycle as well without sharing those refunds- so you are not missing any dollars owed to you for things that may even be out of your control such as large leaks or unpredictable weather conditions. Things happen so immediately identifying the overage is the best possible solution to ensure you are getting all refunds back in your pocket while avoiding future costs in the event of a water leak.
ExpenseLogic™ allows for all impossible-to-manage invoices whether it is your internet, fixed wirelines, mobile devices, or gas/electric to be easily administered, audited and paid on time. Nine key software components comprise ExpenseLogic, allowing it to become the most flexible, intelligent software application in the industry. Take a look into its capabilities below:
To gain better insight into RadiusPoint’s auditing solutions, visit our case study and for more information on how ExpenseLogic’s can save you both time and money, please visit its website or contact us today