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Profit Source, LLC, headquartered in
are classified as a Minority Business and prior
to the formation of The Profit Source, the founders were top performing senior
auditors for two of the largest Supplier Payment Recovery firms in the
majority of our business has been located in the Mid-Atlantic region of the U.S.,
we have clients located outside of this region, including California. At
least one of the principals of The Profit Source personally supervises
every audit on a full time basis, which ensures the highest quality of audit
recoveries. Maintaining good vendor
relations is of utmost importance and we adhere to or exceed our client’s
have set high auditing standards and ethics and have never lost a client!
In other words our client retention rate is 100%.
We feel there are very few, if any, audit firms that can boast this.
enhance our client’s bottom line profits by identifying and recovering monies
missed or lost through the purchasing and payables process.
In addition to developing a “partner” relationship with all of our
clients that allows both parties to learn from each other, we have spent
considerable time and energy to develop “in-house” auditing tools that allow
our auditors to maximize recoveries for our clients.
Each audit and client has unique needs.
Therefore, we customize queries and programs “on the fly.”
Our turnaround time for requests is usually within 24 hours.
We have also developed Claims Management© – this is our
in-house monitoring and tracking system that allows auditors to document errors,
create claim/debit forms, and monitor the claim status of thousands of claims.
Claims Management© also allows us to produce customized
client management reports as often and as soon as requested.
All claim copies are back-end imaged at The Profit Source for future
auditing staff has been performing payment recovery services since 1987 and
eighty percent of our auditors have had many years of AP experience before
becoming auditors. On the average,
our auditors have in excess of thirteen (13) years of AP auditing and recovery
experience. Our auditors follow a
detailed audit procedure to ensure thorough, accurate, and legitimate claim
findings. If required, all claims
can be pre-approved before deduction.
we are heavy users of technology, we do not rely on “programs” to do all of
our work. We provide more than a
computer audit. Our auditors learned
to audit using their experience and knowledge of accounts payable procedures.
Over the years, their auditing skills have become exceptional – a
merger of skills and technology. For
example, our audit procedure for identifying duplicate payments will utilize the
reports, each one tailored for a specific client.
of the flexibility of our systems and the individual needs of our clients, we
develop customized reports for each engagement.
At a minimum, we provide claims listings reports, grouped and sorted by
any or all of the following: vendor number, vendor name, department, error type,
claim date, and claim size. Reports
are provided as frequently as needed/requested.
After completion of the audit, a Management Report is created and
personally presented at a meeting to assist our client in identifying and
correcting any observed or identified weaknesses.
Included with the Management Report are other reports that we perceive
may be helpful to our client or that our client has requested.
Profit Source has been successful in auditing diverse industries, encompassing
all error types possible. We pride
ourselves on our thoroughness by looking at every transaction.
In addition, whenever we have performed a secondary audit, we have always
recovered additional profits for our clients.
In some situations, we have recovered three to four times the amount
originally recovered by the primary audit firm.
No matter how good money is at “hiding,” we are even better at
are knowledgeable in a wide variety of industries including Service,
Distribution, Manufacturing, Wholesale, Retail, etc. and have a recovery rate of
approximately 98% of the claims we identify.
Typically, each auditor reviews one supplier at a time, unless we find it
advantageous to divide the audit into projects. We review every supplier/vendor thoroughly.
We routinely re-audit each other to guarantee maximum recoveries for all
of our clients.
we routinely work:
/ Escheatable property
first audit step is establishing working relationships with key people in your
organization and acquiring the pertinent data the review process requires.
Our typical audit plan follows (Note: Timeline in italics):
client’s raw data and convert to our working format. <30
- 60 days prior to start of audit>
specialized reports to pinpoint possible areas of recovery: <10
- 20 days prior to start of audit>
wrong vendor reports
history reports for pricing/pass-through costs
customized reports are generally developed once data has been reviewed)
and review contracts for compliance. <weeks
1 – 4 >
for rebates – volume, pricing, etc. < weeks
1 – 4 >
all invoices for pricing, terms, tax, freight/shipping, penalties, and
discounts. <weeks 1 - 8>
and review supplier statements for credit recoveries. <weeks
1 – 4>
customized management report and review with client at conclusion of audit. <approx.
45 days after audit completed>
have found that best audit results are obtained when an audit is performed (or
at least started) at the client’s site the first time.
This allows us to better understand our client’s business and vendors.
This also gives our first time clients the opportunity to learn more
about us and the process and procedures we use.
upon the type and complexity of an audit, we have also been successful in
performing audits from our office in Richmond
audit can be conducted wherever our client prefers.
our client has provided data files, direction and access to other files such
invoice copies/images, assisted in identifying “sensitive” and “do not
audit” vendors, there should be little involvement necessary from client’s
staff. Any additional
“human resource” time would be at our client’s discretion.
do not have to be bothered with correspondence generated as a result of the
recovery audit. All
vendor correspondence is answered within one business day by the auditor
familiar with the particular claim/debit.
Each claim/debit form also includes a senior auditor’s name and
telephone number in case there are any questions.
use our unique ClaimsManagement© program in which we enter all
claims and potential claims. With
this program, we are able to provide standard and “ad hock” reports at any
time. We also track
the status of claims through this program and the program also generates the
customized claim/debit memos.
auditors follow a detailed audit procedure to ensure thorough, accurate, and
legitimate claim findings. If
required, all claims can be pre-approved before deduction.
Mr. Michael Drayer
Tel: 804-288-0718 ext 222 (or toll free at 888-750-1937)