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Strengthen Internal AP Controls

  • Strengthen Internal AP Controls

    Strengthen Internal AP Controls

    The Association of Certified Fraud Examiners (ACFE) estimates that 5% total revenue is lost each year to occupational fraud. Much of this fraud originates in the Accounts Payable department. Since all the money leaving a business goes through AP, it looks like an easy target to criminals outside the organizations and fraudsters working inside the company.

    Accounts-Payable-Software-Strengthen-Internal-AP-Controls

    There are several ways to catch and prevent account fraud. Many of these are simplified by using automatic AP software. Automating the AP department is an essential step in cutting down on fraud and simplifying adherence to regulations such as Sarbanes-Oxley. Relying on audits to catch fraud, as in a manual AP department, consumes more money and simply can’t get the job done anymore.

    Catch Invoice Oddities

    Next Process AP Automation software gives you the control and oversight needed to quickly deal with invoicing errors. You can access every processing detail, event, and change in the system, which simplifies audits and makes researching invoice oddities easy.

    Even if there’s no fraud involved, duplicate payments can slip through the system and cost your company money. AP automation catches if two invoices have the same number or if gaps and skips in the system indicate there may have been false invoices created accidentally or deliberately.

    Keep Track of Vendors

    AP automation keeps track of vendors so you can more easily catch oddities in the system. Sometimes when people are stealing money through the AP department, they set up fake vendors or attribute false invoices to existing vendors. With our software, you can search your vendors to check for strange addresses that might indicate a fraudulent company.

    With all invoicing activity at your fingertips, it’s easy to notice increased vendor activity and out-of-place payments that may indicate fraud. Our portal also grants your legitimate vendors controlled access to search their own invoices. If they notice a problem, they can contact your AP department as well.

    Keep Employees Happy

    One of the best ways to limit fraud in the AP department is to cultivate a trustworthy pool of employees. Ideally, you don’t want a high turnover rate or temporary employees working in the AP department. Address any issues that arise promptly to keep moral high. An added benefit to automating the AP department is that it makes employees’ jobs easier.

    Automated AP systems also allow you to limit how much authorization a single user has. Segmenting duties helps prevent fraud by making sure the same person can’t create, approve, and pay a single invoice.

    Want to learn more? Contact us today for a software demo.

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