Employee business expenses are the second largest controllable cost for organisations and therefore a vital area to focus on in terms of control and reducing spend.

There are number of options that can help with expenses fraud and support internal expense management systems and processes. This article explores the pros and cons of each.

Accounts Payable Recovery Auditors
Specialist Duplicate Expense Finder
Expense Management Automation

Accounts Payable Recovery Auditors

Many larger organisations make the decision to use Recovery Auditors as a first step. This can be an effective route especially as many charge on a no win no fee basis. They use a combination of technology and experience to provide an audit report on potential fraudulent claims, duplicate payments or process improvements.

Benefits of using a Recovery Auditor?

• No Win No Fee. These auditors often work on no win no fee and this can be very cost-effective if you have little or no budget.
  
  
• Recovery audits can measure the need for improvements within the business process. They improve financial performance by identifying and recovering any overpayments and help improve the procure-to-pay processes.
  
  
• Learn from outsiders as to industry best practices. These come in the areas of process, technology, and people skills based on the auditors experience in various other similar companies.
  
  
• Help with Regulation and Compliance. A recovery audit can cover much of the same ground a Financial Director must cover to ensure the integrity of a business; from process controls to contract compliance to payment checks and balances.

The Downside

• They Can Cost A lot in the End – recovery auditors charge commissions of between 20-50% of the amounts they recover for you.
  
  
• Their Value Is In The Technology They Use – and they often won’t let you use it directly. They are highly protective of their technology which has helped create an industry.
  
  
• They Don’t Help You Prevent Future Payment Errors – It is not in a recovery auditor’s interest to help you cure your problem.
  
  
• They Take The Data Off-Site – usually when you hire a recovery auditor, you have to give them your payment history data, which usually involves it leaving your site.
  
  
• They Can Cause Problems With Supplier Relations – it’s usual for recovery auditors to contact your suppliers directly. Since recovery auditors are paid by results, they can sometimes be too aggressive with suppliers, and create future relationship problems.