Invoice audits are a great way to ensure your business is protected. Invoice audits help you look at all of your invoices and accounts receivable in a more detailed manner. When you do an invoice audit, you can find out if there are any discrepancies or issues with the invoices. This will help prevent fraud before it happens, which is always the best option.
Automated payments (AP) automation is another excellent way to prevent fraud from occurring. AP automation allows businesses to accept payments online for their goods or services through e-commerce platforms. This means you don’t have to store credit card information for customers to purchase on your website or through an app.
Invoice audits and AP automation are the best defense against fraud. When you automate your accounts payable processes, you can achieve the following;
Reduce Manual Errors
Invoice auditing and AP automation are the best ways to prevent fraud. The invoice auditing process involves reviewing invoices for accuracy and completeness, while AP automation uses pre-defined criteria to determine whether a payment is accurate. This can help reduce manual errors often made by employees or contractors when processing payments.
Reduce Fraud Losses
Fraud losses can be large, especially when dealing with third-party payments. If a company pays a contractor for work that never gets done or if payment is made for services that weren’t performed, then both parties could be losing money and time, and effort. Invoice audits and AP automation can help companies prevent fraud losses by ensuring that all payments are processed correctly and on Time.
Prevent Malicious Use of Vendor Accounts
When people use vendor accounts without authorization, they steal from their employer or client, whether they want to or not. By using invoice audits and AP automation, companies can stop these rogue users from making unauthorized changes to their accounts so that their employers don’t get stuck paying for services they didn’t order or didn’t receive in the first place.
Identify Potential Problems Before They Become a Problem
Invoice audits and AP automation are designed to identify potential problems before they become a problem. If you’re constantly checking invoices against your books, you will know when something has gone wrong or someone is trying to take advantage of your system by adding unnecessary amounts to their invoice. This helps prevent fraudulent activity from occurring.
Increase Accuracy in Your Data
Invoice audits and AP automation helps you increase the accuracy of your data. This is crucial when it comes to fraud prevention because many times, people looking for ways to commit fraud will try to get around the system by just changing their information and going through with the transaction anyway.
Find Suspicious Transactions Faster
Invoice Audits and AP Automation is that it allows you to find suspicious transactions faster. When you use these tools, you’ll be able to go back into older transactions and look for any discrepancies that might have been missed. You’ll see if any changes were made after completing the transaction that wasn’t originally recorded.
Prevent Duplicate Payments
Invoice audits and AP automation allow you to prevent duplicate payments. If someone tries to make two separate purchases with two different credit cards, then both payments will be rejected by the system as being fraudulent unless they’re reconciled with each other within 24 hours of being processed by your bank account or credit card company, depending on which one you use.
Reduce the Time it Takes to Process Payments
The Time it takes to process payments is a significant concern for many businesses. This can be especially true for small startup companies with limited resources. Invoice audits and AP automation can help reduce the time it takes to process payments by speeding up the approval process. Invoice audit technology will give you more accurate information on who has paid your invoices and when that payment was made. You will see the financial impact of any changes made to your software or processes.
Invoice audits and AP automation can help you reduce the number of manual reconciliation processes
Manual processes tend to be error-prone, slow and labor-intensive, which means they are prone to fraud. Automation is a technology that allows businesses to reduce the time it takes for their employees to complete tasks to free up time for other essential tasks. It also reduces errors in data entry by providing a more accurate system for entering data.
Reduce manual labor costs
If you are using manual processes for processing payments, this could mean more work for yourself or your employees. Pre-determining who has paid what can eliminate some of these manual processes and save money in the long run:
Basically, manual work is time-consuming and tedious, so if you have many accounts that need to be monitored and updated, it will take you forever to complete all of your tasks every day. You can reduce your manual work significantly by automating your processes and creating automated scripts for various tasks. This means you can focus more energy on other aspects of your business, such as marketing or sales, instead of having time to enter information into spreadsheets or manually update records daily.
Prevent payment reversals
The most common type of fraud is a customer who receives a credit card statement with an autofill function and returns the item they purchased, but their credit card company reverses the charge. When you run an invoice audit, you can stop this from happening by checking to see if your customers’ names are on file with your processor.
Invoice audits and automation are powerful methods for fraud prevention. They can spot invoice anomalies and automate the identification of potential fraud. Auditors will look for patterns in invoice numbers, credit card details, and other data points that could indicate fraudulent activity. Auditors can also use AP Automation to identify potential fraud by comparing invoice data against previously collected data from other sources, such as credit reports or existing accounts receivable records.