Vendor statements: they’re tedious and time-consuming to review. However, Not regularly receiving and reviewing statements can lead to lost/unused credits for your business.

There are many reasons healthcare groups don’t regularly review their vendor statements, whether it be a lack of time and resources, not having a consistent review process, or simply accepting when vendors don’t send monthly statements. But these oversights can prove costly, with many vendors applying credits to unrelated invoices or making unauthorized charges to accounts without notice. Healthcare systems subsequently continue on without the knowledge of available credits or overcharges.

When Vendors Make a Mistake

Imagine one of your vendors issues you two credits for returned goods. Then, six months later, the vendor applies for these credits off the account without informing you what charges the credits were applied to. Because you do not receive statements from this vendor, it is nearly impossible to find where the credits went. This is where the use of TAG’s Statement Collection services can provide assistance. After we communicate with your vendor and locate the oversight, the $30,600 credit is reinstated back onto your systems account.

TAG’s Tips for Reviewing Vendor Statements

To avoid ending up in the same situation as the example above, TAG recommends taking steps to improve your vendor management:

Require Vendors to send Monthly Statements

• At a minimum, you should be requiring monthly statements from at your top-spend vendors. This is a starting point in the process. If you want to fully optimize your vendor credits and avoid charges, you should be reviewing all vendor statements.

Dedicate Personnel to Regularly Review Statements

• Assign members of your Accounts Payable staff to regularly review statements. This will help ensure that there is an efficient procedure for reviewing and the task never goes undone.

Regular vendor statement reviews lead to better vendor management. If your accounts payable department is neglecting the vendor statement review process, give us a call. We’ll work with your team to improve your operations and recover more money–all without losing any productivity.