Having a company’s financial statements audited by independent external auditors is a best practice that ensures compliance and accountability.

Well-managed audit trails are key indicators of good internal business control

Accounting benefits of audit trail software from AP automation

An audit is key in establishing trust between management and stakeholders.

Well-managed audit trails are key indicators of good internal business control, but the trail can become fairly complex in various situations. Use audit trail software to streamline the audit process of accounts payable.

What is an audit trail?

An audit trail or audit log is a history of every transaction and includes all of the documents involved in the purchasing and payment process, including messages between employees, invoices, purchase orders, and more. It’s a record of all the steps involved in the transaction.

You can think of an audit trail as insurance. You pay it no heed or need it unless something goes wrong. It’s the same for an audit trail. You don’t need it until you really need it. But if you don’t have one, the consequences can be catastrophic.

Audit trail software streamlines the audit process of accounts payable
Read about the benefits of having an audit trail software

Importance and Value of Audit Trail Accounting

The benefits of having a software audit trail with audit automation in place include:

Once employees realize that everything is being tracked by audit trail software, they think twice about attempting something they shouldn’t. A good AP automation platform will record each and every transaction with time-stamps.

How many times have people in accounting or finance spent hours searching for all the documents related to one transaction? A software audit trail can access all records instantly. The audit trail will also show corrections or other changes made to a transaction and provide visibility into who did what, when.

Tax audits can be painful and expose the business to tax penalty risk any time it happens. Audit fees are based on the time involved and paper processes will take up a considerable amount of it.

Not having an audit trail, or having missing documents and transactions raises red flags for auditors. It’s wise to ensure everything is available for review, and quickly.

Companies in every industry, whether they are regulated by the government or other regulatory body need to show that they are compliant with policies and procedures. Lenders and investors need to be assured that the organization is transparent and accountable for all the transactions it undertakes.

Comprehensive AP automation software is engineered to provide an audit trail complete with all of the documents and messages involved in each and every transaction.

For more information about Rillion AP Automation with Archive & Audit, visit our solution page here.

Rillion – AP automation for your peace of mind

Rillion provides accounts payable automation (AP Automation) to organizations in over 50 countries worldwide. We get high ratings for ease of use and great support. 96% of Rillion customers feel that the platform fulfills expectations, and 95% consider Rillion to be a worthwhile investment.

Our job is to make your job easier, let us show you how!

Accounts payable automation has an audit trail, which is time stamped record of all the events related to the accounts payable process around the payment for goods and services.

The audit trail function gives finance staff the ability to pull essential information and accommodate both internal and external investigations for everything related to supplier invoice data, invoice approval and invoice payment.

An audit trail in accounts payable is an invoice log that tracks all the events around receiving vendor invoices, the approval workflow and invoice payment.

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