Realizing that authorities are looking into fraud in your workplace can be a frightening thought, particularly if they start asking you questions. Finding information that clears you of any wrongdoing may be crucial. One possibility is to go through records derived from invoice reconciliation.
Not all workplaces utilize invoice reconciliation, but it can be a beneficial tool for the companies that use it. Nerdwallet describes how invoice reconciliation works for businesses.
Checking business transactions
Your business may be one of many that regularly pays for products, supplies or services, so there will be a variety of invoices that your company will process. Sometimes errors occur. Your workplace could end up paying more or less than the amount listed on an invoice or pay for a product that the vendor has yet to distribute.
Businesses use invoice reconciliation to minimize these errors. A bookkeeper or accountant can take the transaction listed in the company’s accounting software and check it against the amount on the invoice. If there is a discrepancy, the bookkeeper can take the appropriate steps to correct the error, such as account for interest charges or verify that the supplies or products reached an intended destination.
How invoice reconciliation may assist you
Using invoice reconciliation is not just to prevent billing mistakes. It can also catch or obstruct fraud. Making sure transactions and invoices match helps prevent a worker from stealing cash paid to the business. So if authorities suspect you of defrauding your company, the invoice reconciliation records may show that the company had in fact received and processed the correct amount and that no money is missing.
Also remember that during a reconciliation process, the bookkeeper or accountant involved might conduct an investigation by checking other invoice documents, packing lists and financial documents. So there could already be a file on whatever transaction you had worked on. White collar criminal cases will vary, so be aware of any unique circumstances that may exist in your situation.