5 Accounts Payable (AP) Benefits of a Recovery Audit
Discover how recovery audits can transform your AP department from reactive to proactive
Account Payable (AP) gets the "short end of the stick" in health systems' procure to pay (P2P) process. AP is often left resolving exceptions, rushing last-minute payment requests, and struggling to keep the hospital off vendor credit hold. AP corrects upstream P2P mistakes, resulting in more work and backlogs and reducing efficiency. However, many AP departments fail to use one of the most powerful tools available – a recovery audit.
Despite recovery audits often having a bad reputation, TAG's Discovery Review complements AP and Supply Chain departments. We work as an extension of your team to pick up and resolve erroneous transactions that health systems do not have the time to do themselves.
Top 5 Benefits of a Recovery Audit for Accounts Payable
Monitoring AP KPIs
A recovery audit with TAG offers more than simply dollars back to a health system. It provides visibility into unstructured and dark data allowing leaders to track AP Key Performance Indicators (KPIs). This visibility powers leaders to prioritize improvements in internal structure, resource allocation, and more.
AP Process Validation and Internal Controls Assessment
A recovery audit can reveal a functional process or one filled with gaps resulting in payment errors. Payment errors, like duplicates and overpayments, reveal process gaps and a lack of internal controls due to staff workarounds.
Identify Data Discrepancies
Furthermore, a recovery audit at TAG aids in identifying data discrepancies in the vendor master file and gaps in available contract data. AP health system departments are often responsible for maintaining the organization's vendor master file.
Improve Workflows Internally and Across Departments
Moreover, dollars recovered during an audit indicate larger issues in a process. TAG's recovery audit investigates the root cause of payment errors resulting in indicators or process gaps throughout the P2P process.
Reduce Future Profit Leakage and Transactional Leakage
Several benefits mention that a recovery audit identifies errors throughout the P2P process, such as incorrect or missing data, erroneous transactions, and missing credits. Armed with this information AP Managers and Directors can prioritize improvement efforts.
Ready to learn more?
TAG's recovery audit serves as checks and balances for AP and Supply Chain. It's a tool of discovery into processes and a decision-making aid for leaders.
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