Profit Recovery involves a detailed review of a company’s accounts payable data files to uncover funds that are owed back to the enterprise due to duplicate payments, overpayments, and failure to take credits or other deductions. Typically, these amounts are obscured and difficult to find through standard audit procedures. A profit recovery firm, for a fee, reviews each disbursement and pursues the recovery of unclaimed funds.
Any business that experiences significant accounts payable variations and problems should consider working with a profit recovery firm. These include companies experiencing rapid change in pricing or discounts and complex discounting, billing and tax schedules; multiple sales tax jurisdictions; and significant merger or acquisition activity that creates variation in the accounts payable system. A profit recovery firm also should be considered for those who have recently implemented a new accounting system, experienced a major organizational change or acquired another company and has experienced a substantial change in the accounts payable systems and processes.
Using a profit recovery service can be very cost effective, especially for companies that have invested in expense management tools that help prevent such problems. These tools can significantly reduce the amount of credit to recover and fees paid. Companies that are not able to prevent these expenses through their own prevention tools can partner with a profit recovery firm while maintaining full oversight of supplier communication channels (letters, emails and calls) to protect their relationships with suppliers.
The average American Profit Recovery Collection Agent salary is $45,038, which meets the national average. For those interested in starting a career with American Profit Recovery, the company provides an excellent training program and an attractive benefits package that includes earned PTO, unlimited overtime and flexible scheduling options.
Companies that proactively work with a profit recovery firm and apply best practices in their accounts payable departments can maximize their ROI and improve their bottom line results. These companies will be able to identify and stop profit leakage, generate cash recoveries and continue to move towards control improvements.