BPO Future Forward: 6 Ways to Strengthen Payment Recovery Programs

Download BPO Future Forward: 6 Ways to Strengthen Payment Recovery Programs

Post on 05-Dec-2014

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Economy & Finance

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It is estimated that a majority of recovery audits fail to thoroughly identify erroneous payments within an organizations procure-to-pay process. In most scenarios, audits do not scrutinize both pre- and post-pay activities and process incomplete data. Also, traditional audit management software do not have the capability to identify all possible scenarios that create payment errors. A strong payment recovery program is not just about audits and recovering money lost through wrong and erroneous payments. It also introduces controls to prevent errors upfront and identifies potential pitfalls. Here are 6 ways to make recovery programs comprehensive, self-sustaining, and capable of providing quick pay backs.

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  • 1. THE FINANCE & ACCOUNTING (F&A) SERIES 6 ways to strengthen payment recovery @Infosys_bpo #FAO programs
  • 2. THE FINANCE & ACCOUNTING (F&A) SERIES 6 ways to strengthen payment recovery programs A strong payment recovery program is not just about audits and recovering money lost through wrong and erroneous payments. It also introduces controls to prevent errors upfront and identifies potential pitfalls. Here are 6 ways to make recovery programs @Infosys_bpo #FAO comprehensive, self-sustaining, and capable of providing quick pay backs.
  • 3. 1 THE FINANCE & ACCOUNTING (F&A) SERIES @Infosys_bpo #FAO 6 ways to strengthen payment recovery programs Understand and evangelize the benefits of recovering payments by treating it as a revenue source 2 Sign strict confidentiality agreements with vendors and make them more accountable for results GET THE RIGHT OUTLOOK MONITOR RECOVERY PARTNERS
  • 4. 3 THE FINANCE & ACCOUNTING (F&A) SERIES @Infosys_bpo #FAO 6 ways to strengthen payment recovery programs Ensure the recovery process focuses on both pre-pay and post-pay activities, with appropriate controls at each stage to avoid wrong payments 4 Develop custom algorithms and logic that thoroughly check possible causes of payment errors upfront EXAMINE THE ENTIRE SOURCE-TO-PAY PROCESS AUTOMATE TO DECREASE ERRORS
  • 5. 5 THE FINANCE & ACCOUNTING (F&A) SERIES @Infosys_bpo #FAO 6 ways to strengthen payment recovery programs Detect potential errors missed cash discounts, pricing and currency errors, incorrect vendor details, and more 6 The audit should include understanding processes, identifying cash leakage points, recovering approved and outstanding claims, and finding improvement areas IDENTIFY CONTINGENCIES CONDUCT A COMPREHENSIVE RECOVERY AUDIT
  • 6. THE FINANCE & ACCOUNTING (F&A) SERIES @Infosys_bpo #FAO 6 ways to strengthen payment recovery programs FIND OUT MORE Blog post READ White Paper READ Infographic VIEW Network with industry leaders at InfosysBPO.com/community InfosysBPO.com/BPOFutureForward