Performing an accounts payable recovery audit and vendor master scrub before deploying a new ERP system can be beneficial for several reasons:
An accounts payable recovery audit involves a thorough examination of vendor invoices, payment records and other financial data. It helps identify any overpayments or duplicate payments made to vendors. Recovering these overpayments can result in significant cost savings for the organization, especially before implementing a new ERP system where data migration and consolidation can be complex.
An ERP implementation often involves data migration from legacy systems. Conducting a recovery audit and a vendor scrub helps cleanse and optimize accounts payable data, ensuring accuracy and integrity before migrating it to the new ERP system. It allows you to identify and resolve any data inconsistencies, inaccuracies or gaps, which can improve the overall quality of data in the new system.
Recovery audits provide insights into the effectiveness of internal controls related to accounts payable processes. By reviewing existing control mechanisms, such as invoice approval workflows, segregation of duties and vendor master data management, you can identify any weaknesses or vulnerabilities. Addressing these issues before deploying the new ERP system can enhance internal controls and mitigate risks associated with accounts payable.
By identifying and rectifying any payment errors or discrepancies, you can maintain positive relationships with vendors. It helps build trust, reduces payment disputes, and fosters collaboration, which can be crucial during an ERP implementation where vendor engagement is critical.
A recovery audit provides an opportunity to evaluate existing accounts payable processes and policies. By analyzing payment patterns, invoice processing timelines and exception handling, you can identify bottlenecks, inefficiencies or outdated practices. This evaluation helps optimize processes and policies, ensuring they align with industry best practices and setting a strong foundation for the new ERP system.
Recovery audits often include data analytics and reporting capabilities, providing valuable financial insights. By analyzing accounts payable data, you can identify spending trends, vendor performance and cost-saving opportunities. These insights can support financial goals and decision-making during the ERP implementation and beyond.
Conducting an accounts payable recovery audit before deploying a new ERP system helps recover overpayments, cleanse data, strengthen internal controls, enhance vendor relationships, optimize processes and gain valuable financial insights. It sets the stage for a smoother ERP implementation and contributes to long-term financial stability and operational efficiency.
Working for Illumis for 21 years, Brush has been instrumental in the growth of the company. Brush served as Vice President at Illumis before stepping into the role of President / CEO and has been involved in all aspects of the company’s business throughout his career.
Brush’s approach to his role centers on the motto of Illumis, Bright Ideas for Better Profits. Known for his loyalty, team building, and tough but fair expectations, he empowers employees to deliver, therefore fostering a company culture that ensures customers can count on people.