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Windfall: Review Old Invoices for Overcharges and Duplicate Payments

Refunds on those old invoices can add up to big bucks

You could be sitting on a cash windfall – stacks of old invoices paid two or three years ago.

Typically one in 500 invoices that companies have already paid includes overcharges or was a duplicate payment.

That can add up fast- an average of $250 a week for companies paying 25 invoices a day, says Jon Casher of RECAP, Inc., a firm that specializes in finding and recovering overpayments.

Your may be due refunds for services not provided, or bills paid at higher than agreed-on prices.

Other likely trouble spots:

· Overnight couriers may have charged for a package that was late. There should be no charge

· You may have paid bills from two parties for the same service, perhaps when a contractor and subcontractor both invoiced you.

· Extra freight charges, sales tax and service charges may be on a bill.

You may uncover a whopper

One company that reviewed its last three years’ invoices discovered it had made five quarterly state income tax payments, not four. After collecting interest for three years, the state of Texas cheerfully refunded the $2 million.

Companies that process 50 or more invoices a day should consider outsourcing invoice review, according to Casher. His firm, like other recovery companies, works on a contingency, getting paid a percentage of what it recovers.

A side benefit of invoice review: you learn ways to avoid erroneous payments in the future.

Info: Casher, RECAP, Inc., 888-697-6430

"Windfall: Review old invoices for overcharges and duplicate payments" © 1997 Progressive Business Publications