Explore in-depth insights and research on the importance of an accounts payable audit in your outsourcing strategy.

Businesses today constantly contend with change, whether growth, restructuring or other factors. Keeping pace with technology, whether it’s GenAI, automation, or the countless digital tools available, requires a delicate balancing act. Businesses must adapt to market conditions, respond to competitive pressures, and navigate globalization, all while meeting client demands for faster, more personalized services. Add in regulatory changes, work force shifts, talent shortages and other economic factors into the mix, makes companies quickly realize time is the most precious of commodities.

The decision to outsource is a delicate one and should be carefully addressed on a company-to-company basis. What cannot be overlooked however, is the importance of conducting regular and comprehensive accounts payable audits regardless of the processing location or industry. Auditing outsourced payables is an essential practice for maintaining financial accuracy, compliance, and efficiency, while also mitigating risks and controlling costs effectively.

According to a study conducted by Broniec Associates based on recovery audits performed for clients with an outsourced AP function, have noticed the results tend to be higher due to processing issues. The study found that outsourced payables can have a higher error rate, often ranging between 10% to 30% more errors compared to in-house managed payables.