Rockford Associates recently held its annual recovery seminar at the Laura Ashley Hotel, The Manor - Elstree.
One topic on the agenda and a question often asked by clients before an Accounts Payable Audit is do suppliers always return overpayments.
Generally the bigger the company the less likely overpayments will be notified or repaid, there are usually too many administrative procedures to go through and journals to clear outstanding balances can be common place.
However, on the whole the Audit Practitioners concluded suppliers do indeed return overpaid monies once Rockford has identified and verified an overpayment has occurred. That said, it is evident the return of overpayments is not always high on a suppliers list of priorities.
Outside the identification and verification of overpayments, the Accounts Payable recovery process can rapidly exhaust the productive working time of an already overstretched AP team, hence the need for recovery audit specialists like Rockford Associates who provide a professional Accounts Payable recovery solution to mitigate such risks by working on a contingency fee basis.
Amongst the Practitioners present it found there were no significant differentials in the return of supplier overpayments for all sectors served including Commercial Businesses, Charities, NHS Trusts, Housing Associations, Local Government or Further Education Establishments.
We felt it would be good to share with our Clients a few “real world” extracts of some of the responses Rockford Audit Practitioners encounter when trying to recover AP overpayments that have been made to suppliers:
The list of reasons for not returning overpayments made to suppliers keeps on growing and the need for an independent Accounts Payable Audit has not diminished. Please don’t wait for your Suppliers to change their last cheque book.
For some expert help in identifying areas where your suppliers may be misreporting figures or contributing to overpayments contact Rockford Associates for a confidential and no obligation initial consultation.