Whether internal or external, a financial audit is stressful time and a common source of headaches for any accounting team. For an organization with multiple entities and lines of business, the pain of the headache can be much worse. The good news is, a multi-entity management (MEM) solution can help reduce strain and mitigate your headaches. MEM with integrated AP can reduce the headache that much more.
Accounting departments that use MEM can centralize their processing, eliminate manual syncing of master records between databases, automate intercompany processing, reduce errors in month-end consolidated reporting and maximize organizational access and control of data.
Auditory Benefits of MEM
- Automatic Centralization – all your financial data in one place across entities
- Streamlined accounting processes – significant time and resource savings
- More efficient corporate processes – bottom line cost savings
- Lower external auditing costs – free up operating funds
Accounts Payable Audits and MEM
One of the most vulnerable departments in a financial audit is accounts payable. When it comes to payables audits, accounting teams can expect auditors to look for the following:
- Generally Accepted Accounting Principles (GAPP)
- Errors & Fraud
- Unrecorded Liabilities
- Proper recording and processing of Approvals & Payments
An accounts payable solution that works directly with an MEM solution is critical for multi-entity organizations, and it will greatly reduce the stress associated with AP audits by maintaining GAPP principles on an ongoing basis while reducing errors and fraud through automation and audit traceability.
With the right AP software solution, financial managers can gain 100% visibility and control over invoices, approvals and payments. And when audit time comes, the right AP software allows administrators to grant portal access to auditors to streamline their efforts and reduce strain on the company.
