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August 8, 2018
Every business experiences human error from time to time, but systematically omitting humans from your financial process often creates a new set of challenges. We know machines aren’t perfect, so even if your financials are somewhat automated, you should always have someone overseeing the process. We recently uncovered a year-old computer error that had cost our more than $10,000–all for a box of staples. Take a look. Through our Discovery Review Process and Item Price Benchmarking, experts at The Audit Group conduct a full analysis to ensure your health system’s cash management is optimized and your organization is receiving optimal […]
July 5, 2018
No one likes missing a discount–especially your hospital’s accounts payable department. Tasked with creating savings wherever possible, your staff will take advantage of any discount they can. Unfortunately, we often see situations where vendors fail to apply these discounts, potentially costing your group thousands in lost revenue. About Cash Discounts Many vendors will offer a cash discount if clients pay an invoice within a certain time period. For example, a vaccine vendor may offer a 2% discount on net-30 terms. Although this sounds straightforward, it’s quite possible for the vendor and the hospital to ignore the discount and not catch […]
June 28, 2018
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 […]
June 6, 2018
It’s true for individuals as well as multi-million-dollar health systems: it pays to shop smart. Hospitals are constantly purchasing supplies and equipment to support their operations and everything from cotton swabs to x-ray machines presents an opportunity to save money. At The Audit Group, we perform comprehensive purchase analyses to drive efficiencies and deliver savings. How does TAG analyze hospital purchasing? Purchasing boils down to three components: frequency, size, and price. Our team analyzes your system’s purchasing needs over time to identify areas where one or more of these can create savings. Here’s an example of how changing an item’s […]
August 8, 2016
Issues: Many vendors offer cash discounts for invoices paid within a set number of days Payment terms may not be communicated to AP resulting in invoices being paid in full within the cash discount period Example: A vendor offered a 3% discount for invoices paid within 90 days Several invoices paid within 30 days, but the system did not apply the discount TAG contacted the vendor to request credit for missed discounts Vendor confirmed credit and agreed to deduct 5 months of discounts from the system’s next check run TAG Tips: Give highest priority to invoices offering cash discounts for […]
