Finance teams saw a 6% increase in reported input errors during invoice processing and a lower rate in reducing other processing errors over the past 12 months. According to FISCAL Technologies, the leading provider of procure-to-pay (P2P) risk management solutions, which has analyzed its UK customers * data over the past two years to understand the real financial impact of the COVID-19 pandemic .
Crucially, FISCAL’s analysis found that the number of identified risks in all sectors increased an average of 20% year-over-year, with the highest increase in manufacturing being 37%. In terms of risk value detected and prevented, the average increase across all sectors was 70% – a total of £ 240m in the twelve months ended March 23, 2021.
Ray Welsh, director of product marketing at FISCAL Technologies, said, “When the first lockdown came last year, there was a lot of speculation about what would happen. Organizations were concerned about processes without access to paper documents and were rightly concerned about how remote control would affect security. However, we quickly found that the finance team is more resilient than initially thought and the impact of the pandemic was not as great as originally projected.
“However, our data analysis showed that the rapid changes led to an increase in calculation errors. In addition, the reduction in other processing errors decreased 6% more slowly in 2020-2021 compared to the same period last year. These findings clearly show that moving from home and changing processes as a result of the pandemic led to gaps in the existing control processes. “
Ray explains that given that many companies are considering more flexible work policies post-pandemic, this is an issue that companies need to address: “Protecting the bottom line is always of the utmost importance as companies look to the turmoil of the Rebuild and recover last year It is important that they have the best measures in place to make this happen. Because of the quick changes that had to take place last year there will be an element of accepting some bugs, but now that the teams have settled into the “new normal” it will not be acceptable in the future.
“Businesses need to ensure their finance teams have the right tools to continuously and proactively generate cash, reduce costs, and protect their P2P processing, while reassuring the company that they have tight financial controls in place.”
FISCAL Technologies’ unique solutions, built on over 17 years of experience, reduce costs using the latest forensics and AI to uncover hidden costs, generate valuable working capital, and deliver continuously actionable insights that drive process improvements and procure-to- Secure pay process. In addition, 100% of transactions are checked 100% of the time so that exceptions are detected quickly and efficiently.
Ray summarizes, “The high level of risk and demands on finance and the increased emphasis on saving and protecting working capital mean that forensic intelligence and protecting finances have never been more important.”