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Creative Invoicing can cause overpayments
Credit Memos, Statements and even a Notice of Payment Due
can look like original invoices. If only one out of a
hundred gets paid in error, it can dramatically reduce
bottom line profitability.
Subtle changes in how credit memos or statements are
issued cause a significant volume of overpayments each
year. There are also instances of phony invoices sent to
companies that look legitimate.
How many times have you seen a balance forward on the top
line of an invoice? What purpose does it serve except to
potentially create overpayments? Last year one client
paid the balance forward to vendors on less than one tenth
of one percent of invoices but with over fourteen thousand
invoices we helped the client RECOVER $38,843!
Duplicate Payments Can Occur In Any Accounting System
A vendor changes name or has more than one address they invoice from, an invoice is received in the mail
and by fax during the same payment cycle, a second invoice is issued with a
different number for the same order or a tired or overworked payables clerk
accidentally adds a dash or leaves off leading zeros when entering an invoice
number. If any of these or a dozen other things that are exceptions rather than
the norm happen a duplicate payment can occur.
One client received invoicing from two locations of a major vendor for the same
orders. Because of our client’s accounting system each invoice was treated like
it came from a different vendor and was paid. Over a period of two years this
happened only seven times but was significant. OUR CLIENT RECOVERED $84,722!
Inaccurate Workers' Compensation Premiums Lead To Overpayments
Workers' compensation can be a complex and confusing issue
for some businesses. It is an area where improper handling
of workers' compensation leads to increased premiums. Slight
changes in worker classification can lead to cost savings.
Many of the changes required to reduce workers' compensation
premiums are attainable by the average company.
We are able to offer suggestions based on our review of
classifications and premiums to reduce the expense associated
with workers' compensation.
Some suggestions require procedural changes, some require
closer monitoring and some require review on an ongoing basis.
Many of the changes are easily implemented and only require the
knowledge to do so. RECOVERY FOR CLIENT WAS $9,138!
Maintenance Agreements Can Cost More Than You Can Expect
Maintenance agreements are found in most businesses. They may
cover such items as copiers, telecommunications equipment,
computers, security systems and even forklifts. Sometimes the
equipment covered is leased and other times it is owned.
Regardless of ownership, the use of maintenance contracts is
not always monitored properly.
One client paid monthly maintenance, service and supplies on
four copiers, eleven telephones, eight PC’s and three fax
machines that were previously removed from lease. RECOVERY $17,872!
Sales And Use Tax Overpayments Are Common Problems For All Companies
Who can keep up with the changing tax regulations? We do! Many
of our clients have internal tax and audit departments and we
still find tax overpayments. We look at 100% of the paid invoices
and compare them to goods and services purchased, use of goods and
services and then we compare that information to federal and state
tax related regulations by industry. We also keep track of current
tax case resolution.
W&A saved one client over one million dollars ($1,000,000)
in state Sales and Use Tax claims during a state tax audit. We
were hired as consultants to research and dispute the underpayments
claimed by the state and at the same time to find overpayments to
offset any underpayments. Through our overpayment of tax findings
and underpayment challenges we changed a $1.125 million-dollar tax
claim into a seventy thousand dollar tax refund.
CERTIFIED TO DO RECOVERY AUDITS (SIN 520-9) FOR THE U.S. GOVERNMENT (GSA) |
