22 Jan 2020
Concurrent Audit of Sales Invoice for Increased efficiency
Concurrent Audit means doing the examination of the transactions at the time of happening or parallel with the transaction. Generally, the term is used in banks as it is mandatory for the bank branches (as per the RBI Regulations) to get its operations audited on concurrent basis. However, many other organizations also get its operations or sub process of the operation audited concurrently for their internal control purpose.
Accuracy of sales invoice
Accuracy of data is the vital aspect when you are dealing with invoicing because these data are directly getting reflected in the financial performance report. Based on these values all strategic decisions of any organization are dependent like hiring new employees, defining salary structure, project for expansion of business and many more.
How accurate invoicing helps in reducing DSO?
A DSO or days sale outstanding is a measure of the average number of days that it takes a company to collect payment after a sale has been made. In order to get paid in time, you must have an efficient invoice process to ensure invoices are generated and submitted as soon as possible after goods have been delivered, or services have been rendered. It is also vital that all information on invoices is accurate and display everything a customer needs to pay. Inaccurate information leads to invoice queries which lead to payment delays.
Why concurrent audit of sales invoice?
Audits are basically done in organizations on quarterly, half yearly or yearly basis. In every audit, experts of third party organization review the overall documentation, process and working system of company irrespective of any particular department. Audits are done for streamlining the working of any organization by making organization to follow standard method/system. In each audit, auditor identifies the bottlenecks and gives NC (Non Conformities) if company is not following the standard working procedure. Concurrent audit is carried out regularly for the transactions happened on that day. It means that the auditor will be the one of the team to provide immediate feedback so as to increase efficiency of the process.
Importance of concurrent audit may be summarized as below:
- Improved Internal Control
- Easy to quick discovery of errors
- Increased productivity
- Quick presentation of reports
- Moral check on staffs
- Reputation and trust of directors
- Error free invoicing
- Prompt delivery of invoices to customer
How can we help?
We at KGMC, makes sure that our experts fulfill all your requirements and work for your benefit. With this kind of optimistic attitude, we work to achieve the milestone. Our approach in audit of sales invoice is focused on
- Timely invoicing of an order
- Timely submission of invoices to customer
- Accuracy of information on the invoices
- Accuracy of information on the supporting documents
- Complete information on invoice a customer need to pay
- Complete set of supporting documents a customer need to pay