Cost Recovery Audit

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Tips & Advice to help you make your decision on Cost Recovery Audit

For years, many consultants offered to restructure a small business' telephone services for a percentage of the savings that business would see on its bill This is an example of one aspect of cost recovery. A cost recovery audit is an audit of a company's books with an eye toward finding money that can be recovered from past activities, such as insurance or local tax estimations, even a federal tax return in some cases. Depending on the size of the company, this can be a very complex and potentially profitable operation. Most companies use an outside firm due to the specialized nature of this type of audit.

For small companies, often cost recovery audits uncover capital that is vital to keeping profitable. With business financial operations as complex as they are in America, very few firms can keep up with a potential worker's compensation overpayment, or the effect of a retroactive change in state business tax law. For larger firms, it is a matter of ensuring that the audit is complete and comprehensive. Finding the right accounting firm is the key to finding the extra money if there is any and sites such as Business.com offer valuable resources that can eliminate the wasted time while providing real resources and information. Get started today by clicking on the links at the left, and you will have a host of information readily available about finding money and audits.

Cost Recovery Audit

A cost recovery audit can greatly affect your company’s bottom line by helping you to identify financial errors, recoup overpayments and decrease the likelihood of making the same accounting errors in the future. There are several things to consider before starting a cost recovery audit project, such as which areas to examine, the pros and cons of using auditing software and if you’ll conduct the audit internally or by an outside cost recovery audit firm.

A cost recovery audit can be conducted manually, electronically or using both methods. A manual cost recovery audit involves hands-on review of documents by an auditor. With an electronic cost recovery audit, businesses use customized software to detect inconsistencies. Consider the following tips to help you choose a cost recovery audit provider:

1. Assess benefits of a manual cost recovery audit.

2. Seek electronic cost recovery audit information.

3. Get referrals from a cost recovery audit directory.

Dig deep with a manual cost recovery audit

While a manual cost recovery audit is not usually the fastest option, it is, in most cases, the most thorough option. Review your accounting processes and determine if you need to correct errors quickly or if you have time for a manual cost recovery audit. You may also find that a combination of the two methods is best for your needs.
Try: Connolly Consulting offers unique manual cost recovery audit services combined with advanced auditing technology to ensure your financial needs are met. Recovery + Solutions is a cost recovery audit provider that offers both electronic and manual services from experienced auditors to analyze your payments and implement affordable cost recovery audit solutions.

Get customizable cost recovery audit solutions

Electronic cost recovery audit software and technology offers quick identification of errors. You will have to weigh the advantages and disadvantages of this method in relation to the unique characteristics of your business. An auditor can help you decide the most efficient process for you.
Try: Automated Auditors offers custom software to provide business owners with cost recovery audit solutions. Cost Recovery Solutions uses custom software tailored to your business specifications to conduct electronic cost recovery audits.

Find cost recovery audit services

Whether you choose to use electronic or manual cost recovery audit solutions, it's important that you work with experienced auditors who have experience advising businesses similar to your company. Choose auditors with keen investigative and problem solving skills.
Try: Apex Analytix is a leading cost recovery audit provider that specializes in experienced auditors using hands-on expertise and technology to identify inconsistencies and prevent future financial errors. McKenna Long & Aldridge is a law firm that provides a range of cost recovery audit services.

You can use websites such as Guru.com to post your cost recovery audit needs and get responses from internal auditors or you can search the website's cost recovery audit list for auditors.