Useful Tips to Minimize Fraud in Accounts Payable

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Useful Tips to Minimize Fraud in Accounts Payable

By CFO Tech Outlook | Thursday, September 17, 2020

Companies should not blindly trust their workers since they are the ones who know where system weaknesses are present. Even long-term employees can commit fraud. Hence, it is essential to leverage consistent control to mitigate the risk.

Fremont, CA: Fraud can have a disastrous effect on a company in terms of its reputation and finances. AP fraud is frequently attempted in the form of duplicate invoices being submitted for payment. Fraudsters target small organizations assuming that they lack the workforce to spot fraudulent activity. They target large businesses because they think that employees are would be busy handling the intense workload. To protect an organization, AP staff have to be very careful.

Let us look at some helpful ways to combat fraud in accounts payable:

Top 10 Accounts Payable and Receivable Solution Companies in Europe - 2019Fraud is Present Inside as Well

Companies should not blindly trust their workers since they are the ones who know where system weaknesses are present. Even long-term employees can commit fraud. Hence, it is essential to leverage consistent control to mitigate the risk.

Establish a Zero Tolerance Policy

Companies should take more strict actions towards fraudsters. Once fraud or corruption is spotted, it is essential to terminate the staff. Tolerating such things would harm the business in the future.

Fraud Can Not Be Found in Overall Picture

One can not spot fraud just by looking at numbers. The control over your AP is in detail. One needs to look closely into individual transactions, search for loopholes, and apply controls throughout the board.

Accounts Payable Automation is Essential

When appropriately established, accounts payable automation can remove human error from the process. As a result, it minimizes fraud risk and helps save money by paying only for goods/services billed and received. This makes it easy to pay invoices in a timely manner.

AP automation solution sets up workflows on the basis of transaction volumes, limits, and so much more.

See also: Top Fintech Solution Companies

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