Accounts payable audit
Every business pays some invoices twice, pays the wrong price or forgets a credit. Most of these errors are small and easy to miss. An accounts payable review looks through your payment history to find them.
Fairview Audit connects you with a partner firm that does the review. Fairview does not do it.
What the review looks at
The review starts from your payments to vendors and works back to what was agreed and what was received. A partner firm typically checks for:
- Payments made twice or made in error.
- Vendor credits that were never applied, or were applied twice.
- Discounts, rebates or volume allowances that were earned but not taken.
- Prices that differ from the contract or purchase order.
- Freight charges that look wrong.
- Sales and use tax charged in error.
- Purchasing terms that were not followed.
- Card or procurement-card mistakes.
- Currency conversion errors.
Some findings point to money owed to you. Others point to a process gap that you can fix going forward. A firm may also flag funds that could count as unclaimed property. In California, for example, holders of financial assets left inactive for a set period, typically three years, report them to the state. [VERIFY: unclaimed property rules in your state]
What you provide
The exact list comes from your partner firm. In general, expect to supply:
- A detailed payment history for each vendor, in electronic form if possible.
- The contracts, amendments and price lists that apply.
- Invoices, purchase orders and receiving records for a sample of transactions.
- Credit memos and vendor statements.
- A list of problems your team has already spotted.
- Contact details for your finance team and key vendor contacts.
Government purchase card guidance has account holders reconcile each statement against their own records, and the same habit helps any business. Good records shorten the process. If your records are spread across systems, tell the firm early.
What happens after you submit a request
Submit a request through the form that fits your business. A partner firm contacts you directly to discuss scope and terms. You then share your payment data and documents. The firm analyses them and reports its findings to you.
You stay involved. Your team can often explain an odd payment in a sentence, which saves the firm time. After the findings are shared, you and the firm decide how to approach each vendor about corrections. Fees are agreed between you and the partner firm. Some partner firms work on a contingency basis.
Who this suits
A payment review is a fit for businesses with a high volume of vendor invoices, several accounts payable systems, or staff turnover in the payables team. It also suits businesses that grew by acquisition and merged vendor files. Finance leads and controllers who want an independent check on payment accuracy are the usual audience.
It is less useful where payments are few and each one is checked by hand. If you are unsure, say so on the form.
Industry pages cover this in more detail for healthcare and financial services.
How Fairview matches you
Choose one of three request paths: larger business, smaller business, or not sure or another need. Each leads to its own form. The type of firm that fits depends on your size, and there is no fixed cut-off. A request goes to the matched partner. If you are not sure, Fairview reads it and matches it by hand.
An independent partner firm that specializes in accounts payable audit handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Will this disrupt my payables team?
Your team will be asked for data and a few answers. The firm explains what it needs before it starts.
Does the review cover payments I have not yet made?
It focuses on past payments. Some firms also suggest control changes for future payments.
What if a vendor disagrees with a finding?
Your partner firm and your team decide how to present the evidence and handle the discussion.
How far back can the review go?
That depends on your records and the firm. Ask during your first conversation.
Related pages
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.