Regular checks, analyses, and reports – ensure compliance and catch costly errors
In this four-part series, we’ll walk you through the key steps of effective supplier management—from evaluation and setup to payment and ongoing monitoring. In this third part, we will focus on the regular checks, analyses, and reports that your business can implement to ensure compliance and strengthen internal controls.
In the first two sections, we discussed the initial checks that should be performed during the supplier evaluation, as well as the ongoing checks that should be in place over time. Could there reasonably be additional checks to perform? Yes, in fact. However, , however, a different type of check that is performed at regular intervals rather than on an ongoing basis within the business.
The advantage of using a system to manage payments and suppliers is that you can also automate other tasks that need to be performed during the fiscal year. This includes both regulatory reporting and quality assurance efforts aimed at reducing costs and risks in the business. Below, we have listed some of the checks, analyses, and reports that many of our customers use on a regular basis.
Side Job Inspection
A side-job audit ensures that none of your employees are engaged in unauthorized side activities with any of your suppliers. In addition to identifying unauthorized side activities, it also helps your organization identify potential conflicts of interest and heightened risks associated with your employees and suppliers. The check ensures that internal guidelines are followed, while reducing the risk of fraud and irregularities. Read more here
VAT Analysis
A VAT analysis involves a review of your organization’s historical VAT management. The analysis identifies errors, discrepancies, and opportunities for capital recovery. The purpose of the analysis is to ensure the correct handling of input VAT, reduce the risk of misreporting, and streamline internal controls. When we assist our clients with VAT analysis, we charge only a commission on the recovered funds. It is therefore a completely risk-free investment that can lead to both improved financial results and enhanced VAT management procedures. Read more here
Reporting payment terms to the Swedish Companies Registration Office
Since 2022, larger Swedish companies have been required to report their payment terms to the Swedish Companies Registration Office. This requirement applies to companies with more than 249 employees and aims to increase transparency and combat long payment terms for smaller suppliers. Among other things, companies must report the average agreed payment term, actual payment term, and the percentage of late payments. Through our platform, we can help our customers generate this report automatically. Simply put, it’s one less thing to spend time and energy on. Read more here
Database maintenance
Effective data management is essential for maintaining strong internal controls. By ensuring that your organization maintains an up-to-date supplier database, you can reduce the risk of erroneous payments, duplicate entries, and fraud. Effective register management involves, among other things, removing outdated or incorrect information, updating contact details, and checking suppliers against scam and sanctions lists. We offer a supplier verification service that helps our customers maintain a more accurate and reliable register, which improves analytical work and reduces risk in day-to-day financial administration. Read more here
Be sure to read Parts 1 and 2 of this series, and stay tuned for upcoming articles on effective supplier management:
Part 1: Supplier Evaluation – Choose the Right Supplier and Avoid Unreliable Players
Part 2: Ongoing Supplier Audits – Identifying Risks and Working Proactively with Suppliers
Part 4: Internal Processes – Built-in Traceability and Enhanced Supplier Knowledge