Here's a cheeky fact for you…..10% of all business payment runs “Batch files” prepared for the bank are found to be incorrect and have one or more errors in them. This data has been researched from over 5 years of customer data from thousands of batch payment runs analysed during the checking process using VigilantPay.
The key issue this highlights is that downstream processes are not always working how they should be.
Here are some ways you can reduce these errors
- Pooling payee details with other organisations
- Maintaining a verified Supplier Master list
- Historical payment history from previous batch files processed
- Automating the onboarding and verifying of suppliers’ payee details
- Cross-checking payroll and creditor payments
Now you may ask ‘How can I achieve some of these things?’
Well, actually these are just some of the standard features that you get when you implement VigilantPay in your business.
In this current business environment, we also see that board members now want to see a lot more detail. Typically these are the types of questions they will ask:
- How would we know if fraud is taking place? What are the Internal and external red flags that they need to be aware of?
- Are our payment processes documented and up-to-date?
- Are our payment systems tested from a fraud perspective?
- What tools do our CFO and Accounts payable team have to check systems and processes? What is our financial health and well-being?
- Do our payment approvers and financial controllers have any concerns?
- If there are suspicions where do we go to get external advice? Can our external accountants assist?
Now if fraudulent activity has been detected, what can you do?
- Internal fraud is much more complex. It usually involves:
- Your HR department,
- Police
- Forensics
- There can be tax implications
- Requires a lot of effort to sort and can be a distraction for management
- Requires damage control and can impact staff culture
With externally committed fraud, do you:
- Deal with it in-house or
- Or bring in experts? If so then who? What's the cost?