For businesses, internal controls have never been as important as they are today. For a variety of reasons, having a set of internal accounting standards are critical to overall success. Beyond just being able to trust the numbers for internal decision making, for publicly traded companies these controls are necessary in order to maintain the public’s faith. Investors are not keen on needless risk.

Since we are now well into the twenty-first century, it makes perfect sense to have technology pick up some of the slack for internal accounting processes. No longer is the accounting audit limited to accounting professionals digging through the ledgers and balance sheet searching for any possible discrepancies that could derail the company. Today, audit software serves as a viable tool in any major company’s repertoire. It provides a number of advantages in a much timelier manner than a team of accountants could provide without having their eyes glued to the income statement.

Overpayment prevention – One might be surprised how often companies, especially larger ones, overpay their vendors. The fact of the matter is that with so many wheels turning, it often becomes difficult to coordinate a single payment for the correct amount to a single provider. Audit software offers a checks and balances system that can nip overpayments in the bud before the check is even mailed.

Fraud detection – One might argue that fraud detection has never before been as important as it is now. If the financial industry has proven nothing over the past decade, it has shown that there will always be parties looking to take advantage of loopholes or skirt the system entirely in order to maximize unearned revenue. Large complicated balance sheets are the best friend to fraudulent vendors. The complication gives them time which may allow fraud to go unnoticed until is too late. Audit software can step in to acknowledge and isolate risky transactions when they occur. Some of the best software available can investigate every invoice in real time – that level of timeliness in detecting fraud can be invaluable.

Reporting – Business is about knowing, knowing where a company stands and where it is going. While some managers may get credit for going with their guts, the vast majority of the best decisions are made based upon the correct background information. Audit software can help to produce real-time information to aid in analysis and decision making. That is not to say that this type of software should be left to its own to file your tax return, but it can definitely aid in creating internal reports.

It is important to take heed that audit software does not offer a replacement for accountants. Rather, it should be used as a tool in coordination with fundamental accounting. Human review and oversight will always be an absolute necessity in the process. But the software offers an added dimension of timeliness and accuracy that would not be available previously, especially for larger firms. The ability to see potential pitfalls before they escalate is a value that cannot be overstated.

Author Bio: By Felix Chesterfield; There are many providers of audit software across the nation, make sure to do due diligence when making a selection.

Category: Finances
Keywords: Audit software, overpayment prevention, fraud detection