Healthcare organizations face unique challenges when upgrading and/or implementing new ERP systems. These challenges include control gaps, legacy data inconsistencies, inefficient procurement processes, etc.
An effective way to address these challenges is to conduct an AP Recovery Audit before or during the ERP implementation. This audit helps to identify control gaps, compare processes to industry benchmarks, reconcile accounts, and deduplicate and cleanse vendor master files. Even if an organization is already in the midst of an ERP project, an AP Recovery Audit can provide a safety net and mitigate the risk of errors and financial loss.
In this blog, we’ll dive deeper into the role of AP Recovery Audits in ERP upgrades and implementations and explain why partnering with an AP Recovery Audit firm can help ensure the success of a healthcare organization’s procure-to-pay processes.
The case for running an AP Recovery Audit before your ERP project
One of the primary benefits of conducting an AP Recovery Audit before an ERP upgrade or implementation is identifying and correcting control gaps. These gaps can include a lack of segregation of duties, inadequate documentation and approvals, and weak internal controls. Identifying and correcting these control gaps before an ERP project helps ensure the new system is implemented with strong internal controls and fewer vulnerabilities.
Another key benefit of an AP Recovery Audit is the ability to compare your organization’s process to industry benchmarks. This comparison can help healthcare organizations identify areas where they can improve their procurement processes and ensure that they utilize best practices in the industry.
Also, an AP Recovery Audit helps healthcare organizations to reconcile accounts and recover overpayments before ERP implementation. This is critical to the success of the project as it ensures that the new system is implemented with accurate data, reducing the risk of errors and delays. Cleaning up your legacy data allows your team to focus solely on the new ERP system data instead of jumping back and forth between systems.
Finally, deduplication, cleansing, and enrichment of vendor master files is also a critical component of AP Recovery Audits. These processes help reduce the risk of duplicate vendors, inaccurate vendor data, and other data errors that can lead to significant issues during the ERP implementation process.
What if you are already running your ERP project?
Often, companies that are in the middle of an ERP project will dismiss the idea of performing an AP Recovery Audit in parallel with the ERP project because they believe they are simply too busy to support any additional projects. While ERP upgrades and installations are resource-intensive and time-consuming, it is also true that an AP Recovery Audit can be wildly helpful and the benefits may very well outweigh the time commitment.
Having a partner that is able to reconcile legacy data while also keeping an eye on the new system data can provide a special safety net during an implementation which can prevent significant disruptions throughout the health system. An AP Recovery Audit firm has the ability to monitor both sets of data simultaneously to ensure the least amount of errors and financial loss. The firm can also inform you of new errors or control problems that have been identified while ramping up the new ERP system in real-time. This mitigates losses while making training and education much easier.
Final Thoughts
AP Recovery Audits play a critical role in ensuring the success of ERP upgrades and implementations in healthcare organizations. Conducting an AP Recovery Audit prior to an ERP project helps to identify and correct control gaps, compare the organization’s processes to industry benchmarks, reconcile accounts and recover overpayments, and deduplicate, cleanse, and enrich vendor master files.
Even if an organization is already in the midst of an ERP project, an AP Recovery Audit can still be incredibly helpful, providing a safety net and mitigating the risk of errors and financial loss. Therefore, healthcare organizations should consider partnering with an AP Recovery Audit firm to support their ERP projects and ensure the success of their procure-to-pay processes.