What do Profit Recovery Firms and The Easter Bunny have in common?
When I was young on Easter morning my parents used to hide plastic eggs around the house with little surprises in them. Some eggs had candy. Some eggs contained dental floss in them (I didn’t care for those eggs so much) and some eggs contained money. (I liked those eggs the most) As the youngest of four siblings by a couple years there were a few years when I was the only child still taking part in the hunt. The older kids had given up the hunt in favor of helping my folks prepare and hide the eggs. And boy did they get into it. They hid more eggs in more ridiculous locations, but keep in mind that meant more money… and it was all mine. I simply had to find it, and that was no small order. I was now one person in search of four dozen eggs spread across the entire house. I remember one year in particular when I had searched for almost ten minutes and discovered only a single egg. So… what did I do?
A) Look in a few obvious places find a small number of eggs and quit
B) Diligently go through the entire house and locate all of the eggs
The same multiple choice can be applied to how you want your profit recovery audit firm to approach recovery. When the decision is about maximizing your cash flow recapture how can anyone settle on sampling as opposed to a steady and thorough approach. Every room, every corner counts. If the moral of the story is not clear, traditonal AP recovery practices sampling, especially when reviewing vendor and supplier AR records. Lavante has built a proprietary soaftware application that communicates with your entire population of vendors and maximizes recoveries for clients of all sizes across all industries. That will buy your AP department a lot of chocolate eggs.
Happy Easter Everybody!