Got Egregious Billing From Your Vendor?

Got Egregious Billing From Your Vendor?

By |2023-06-20T08:41:08-05:00Tuesday, June 20, 2023|Categories: Cost Reduction, Document Output|

We see it every day.  The waste that a company realizes as a result of misbilled vendor invoices can be substantial. It directly impacts the company’s profitability and financial performance by increasing costs and reducing overall efficiency.  As a part of every FPR analysis, we take a forensic level view into each and every invoice, uncovering billing errors.  In a recent audit, we discovered a client had been egregiously overbilled to the tune of hundreds of thousands of dollars.

Recent Audit Results

This client was over-billed literally hundreds of thousands of dollars for a hand full of copiers over a period of one year.

Areas where we see our clients experiencing financial loss can include:

  1. Overpayment: Paying more than the actual value of goods or services due to billing errors or discrepancies results in financial loss for the company.
  2. Time and Resources: Correcting misbilled invoices requires significant time and effort from the company’s accounting or finance department. Employees must identify and investigate the discrepancies, communicate with the vendor, and rectify the billing errors. This diverts resources that could be utilized more effectively elsewhere in the organization.
  3. Reconciliation Issues: Misbilled invoices can complicate the company’s financial records and create reconciliation discrepancies. Reconciling invoices with purchase orders, contracts, and payment records becomes more challenging, leading to additional administrative work and potential inaccuracies in financial reporting.
  4. Strained Vendor Relationships: Frequent misbilling can strain relationships with vendors. The need for repeated communication and resolution of billing issues may result in delayed payments, disputes, and a breakdown in trust. This can lead to disruptions in the supply chain and potential difficulties in securing favorable terms or maintaining good vendor relationships in the future.

To mitigate these risks and minimize waste, it is crucial for companies to proactively find a solution provider who is equipped to effectively assist them in better managing these areas of their business.  FPR’s consolidation and technology solutions streamline invoice management and reduce the likelihood of misbilled invoices.

About FPR

FPR is a privately-held North American-based consulting, technology services and outsourcing company. Through our industry-unique VISIONAnalysis™ process, we have successfully combined unparalleled expertise and comprehensive intelligence to deliver significant value and cost management to our clients. FPR collaborates with its clients to help them achieve high performance.

For more information, please feel free to contact Mr. Brent Newton at FPR at (972) 650-0700.

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