Fraudsters may compromise most account payable activities since they are kept within many invoices. This makes accounts susceptible to scams, and it can even become an expensive issue with time. An accounts payable software is the system used to perform finance and accounting activities. It can also be used to prevent invoice fraud. Its solutions range from simple single-entry applications for bookkeeping and writing checks to the advanced double-entry software, which provides accounts payable, accounts receivable, and ledger functions.
Ways to Stop Invoice Fraud Using the Accounts Payable Application
Matching every invoice to a buying order and receipt can assist in preventing a person from getting into invoice fraud. You should link the orders with receivables correctly, and you will just pay for what you get.
Evaluating the Amount of Invoice
If you review the sum of the invoice periodically, you will be able to monitor changes and suspect if there is any unusual occurrence related to supplier invoice fraud. And also, you can tell if you are receiving great deals from your suppliers. This offers a chance to negotiate with providers well.
Analyze the Vendors
Invoice fraud may come about through fake company names, addresses, or account numbers. This is why we recommend looking out for new vendors each time to be sure that they are genuine. If the stated address is a home or post-office box, that is automatically a fraud sign. Noticing such can make it simpler to detect internal invoice fraud.
Tracking Invoice Activities
Ensure to track invoices often since that can enable you to identify any changes in anything that happens. For example, if the vendor submits so many invoices, even if they are real, make sure you check them thoroughly.
Duplicated invoice payments are the most popular invoice fraud activities which companies experience. Individuals may submit one invoice twice, but they ensure to edit its details, like date and other contents. The accounts payable application allows fuzzy matching, which detects duplicated invoices.
We recommend automating the accounts payable sector with the accounts payable application. It can provide the devices with everything needed to make the accounts payable activities efficient. This is a very crucial step to undertake if you want to put an end to employee invoice fraud and any other form of invoice fraud.
Apart from automating billing activities, the account payable software catches fraud statements and provides the tools to monitor the activities of invoices and analyze the information of the vendor. For both the organization and the accounts payable sector, it creates a win-win situation.
One way of detecting invoice fraud:
After you have put the measures in place, you have to know if they are functioning. Find out how data analytics will enable you to notice fraud with various indicators.
When a vendor is getting paid by a company like MRbetgames, a fraudster can process the invoice during that time and direct the money to his/her account.
Duplicate payment may also happen when invoice payment is made both via a purchase order and even as a one-off vendor expense system. It occurs when a worker fails to ask for the expense purchase order.
Data analysis can assist in verifying the information to determine if there are duplicate payments. It can search for duplicates combinations that are related to a statement. For instance, the billing number, the name of the vendor, amount, and date. It may even check for anomalies like whether there is a transaction that matches the information but has a different number and more.
Invoice fraud is a very popular type of fraud in organizations. To tackle it, companies use the accounts payable applications. But you must never assume that you are safe simply because there is a fraud precaution in place. The measure is not completely effective, especially because fraudsters get more and more cunning each time. They are capable of finding other ways of compromising the company’s controls. This is why we also recommend learning how to identify an invoice fraud.
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Thomas Glare is a Fraud Manager at a certain organization. He understands how much any kind of fraud would cost an organization, and he is doing everything he can to put an end to it. Besides writing, he is also a good advisor.