SKW
& Associates
Straight to your bottom line.
Recovery Audits that put money
back into your business!
Who is SKW and how can we help you?
One Of Our Satisfied Clients:
In 2018 when we first began gathering data from Match, I discussed with the supervisors what kind of recoveries they anticipated we would make.
They said that if we managed to recover $250k, it would be a very impressive project.
After five months we returned to The Match Group over $1,250,000. We assisted with a few other small projects while we were there, and they employed new processes to eliminate the issues identified in the review.
Every 3 years we return and provide the same service and while the findings decrease significantly, human error always provides recoveries.
What Are Recovery Audits?
Recovery audits are tests SKW & Associates can perform for you of your vendors’ transactions, finding miss-spent funds and recovering them for clients.
What Are The Benefits?
The Returned funds “go directly to the bottom line”
The Audits provide a more transparent vision of the vendors back office.
The Audit reports provide your procurement group an advantage in renegotiations of contracts.
Why Should They Be Done?
“50% of Procurement Executives stated that they are achieving less than 50% contract compliance.”
Technology Concepts Group International
Recovery Audits are the best practice utilized across all industries.
Gain transparency and confidence with your vendors.
Recovery Audits retrieve funds that vendors hold as 0% loans.
Book a call now!
Recovery Audits &
the Procurement Cycle
The Primary goal is to identify issues and correct errors within the vendor’s back office.
The Procurement Cycle identifies the necessity for Recovery Audits in the 7th step of the procurement cycle: Compliance.
Regular Interval Checks:
These will be done at scheduled intervals during contract execution to monitor compliance and performance against contract terms.
Recovery Audits have become the standard practice, no matter the industry.
Recovery audits minimize risk, ensure contractual compliance, and streamline the recovery process
Types Of Recovery Audits
Accounts Payable Audits
Understanding Accounts Payable Audits for Business Owners
What are Accounts Payable Audits?
Account Payables Audits thoroughly analyzes transactions with the majority of vendors, identifying funds that the vendor has sitting on their books and returning those funds to the client.
What the Client Needs to Provide?
Thirty minutes with our Client’s AP Manager will provide us with the majority of information we need.
A Master Vendor List, Vendor Spend data and a signature on a pre-generated Authorization Letter is the majority of what we need. A project Champion will need to be identified and we’ll schedule monthly meetings to update our progress and review recoveries.
What Do Your Vendors Need to Do?
We will communicate with your vendors Accounts Receivable Managers and identify any funds that should be returned to you. Typically, the AP manager will authorize a credit memo that will be applied towards your future payments.
Benefits of Accounts Payable Audits
Our AP Audit will enhance your bottom line as all Credit Memos received are Zero % Loans that were extended to your vendors. Our audits also minimize future issues as vendors will be more proactive to return these funds to you.
Book a discovery call now!
Vendor Compliance Audits
Simplified Guide to Vendor Compliance Audits for Business Owners
What are Vendor Compliance Audits?
Vendor Compliance Audits are an intense scrutiny at the transactional level of the Contractual relationship between a Client and the Vendor.
What Does Your Business Need to Do?
Choose a Project Leader
Together with SKW, identify potential vendors to audit
Collect all pertinent contract with the respective vendors
Download invoice level data
Plan monthly meeting to review progress of audits
What Do Your Vendors Need to Provide?
A point of contact to work with during the audit
Contract history for the audit period
A line-item data download for the audit period
What Are The Benefits of Conducting
Vendor Compliance Audits?
Increased confidence with your vendors
Improved Contracts
Recovered funds go straight to your bottom line!
Real-Time Invoice Review
Simplified Explanation of Real-Time Invoice Review for Business Owners
What Are Real-Time Invoice Reviews?
Our Real-Time Invoice Review is a process where the SKW team reviews your invoices from specific vendors in real time. We validate the invoice against the contract and ensure the invoice is correct. When it is incorrect, we send it back to your vendor and discuss with them how to make it correct. They’ll resubmit the invoice and we’ll review it again to ensure it is correct. With this process in place you’ll know the invoices are correct and pay with confidence.
Our Real Time Invoice Review is primarily for high volume vendors or CAPEX projects.
What Do You Need to Do
as a Business Owner?
Identify Project Champion
Choose Vendors
Collect relevant contracts
Integrate SKW into Invoice flow
Monthly meetings to review impact
What Do Your Vendors Need to Do?
SKW will work with your vendors’ Accounts Payable managers to ensure the invoicing is timely and correct. Our review will not impact getting your vendors paid in a timely manner.
Benefits of Real-Time
Invoice Review
Immediate Savings – We Identify and correct errors quickly, saving money and time on each invoice.
What Professional organizations and studies have stated about recovery audits
“Contract non-compliance can lead to savings leakage, higher overall costs, and lower performance for sourcing and procurement teams.” … “Ardent Partners research has determined that for every dollar that’s spent off-contract, there’s an average loss of between 12% and 18% to the enterprise.”
The Real Cost of Contract Non-Compliance: A Multi-Stakeholder View by Andrew Bartolini & Matthew York, March 2015
“Managing leakages from third-party contracts is an on-going challenge for most organizations. An ineffective contract lifecycle management may result in contract leakages (financial or non-financial) between 5%-15% of contract value.”
Does Your Organization Need a Contract Leakage Study? by Gaurav Sharma, July 2017
“Research by the independent International Association for Contract & Commercial Management (IACCM) indicates a massive boost to bottom line figures can well be achieved by focusing on an often neglected discipline: Contract Management. …good Contract Development and Management could improve profitability by the equivalent of 9% of annual revenue.”
Poor Contract Management Costs Companies 9% - Bottom Line by Tim Cummins, October 2012
“…by effectively managing [contracts] throughout their operational life, an organization can typically save between 5% to 15% of contract spend.”
Supporting Local Public Services Through Change: Contract Optimization by Ernst & Young 2016
RECOVERY AUDITS
The only way to really know is to look!
Thaddeus Shaffer
SKW & Associates
thaddeus.shaffer@skw-assoc.com 713.201.4003