Profit Recovery Partners is a professional services firm that develops, implements and manages cost-reduction solutions. Its spend management, supplier management and procurement strategies have resulted in more than $3 billion in client savings. The company serves FORTUNE 1000 companies, law firms and private equity firms across North America. Profit Recovery Partners is headquartered in Boston, MA.
Profit recovery firms do a rigorous review of a company’s accounts payable disbursements to uncover funds that are lost due to duplicate payments, overpayments, failure to take credits or deductions and mismatched sales tax jurisdictions. The firm then, for a fee, will pursue the recovery of these monies from vendors or internally through reworking company accounting systems.
The companies that benefit the most from a profit recovery audit are those who have significant variations in their accounts payable data files (such as multiple versions of PO paper invoices), significant changes in pricing and discounts, significant mergers or acquisitions or complex or inconsistent sales tax processes. These problems are difficult to discover in a routine accounts payable audit and can be missed for years.
For example, a company that misses a duplicate payment to a valued vendor may never recover this amount from the vendor. Additionally, if the debt is sent to collections, it becomes a delinquent account on a credit report and hurts a company’s credit score. In these cases, paying off American Profit Recovery and having the collection account removed from a credit report seems ideal. However, this does not necessarily mean that your credit score will improve, and there are other factors that need to be taken into consideration.