CORRECTION: CPRS Seeks to Mitigate Lost Revenue Due to Profit Leakage
BELLEVUE, Wash., October 6, 2023 (Newswire.com) - This correction has been released in order to update key statistics and update the person being quoted. Widely researched industry findings show that a staggering amount of potential revenue is lost annually across various U.S. industries due to profit leakage. This unrecognized or unintentional loss impacts major industry players and the global economy at large. Cost recovery, also known as profit recovery, is the solution.
CPRS, an accounting firm that specializes in profit loss recovery and tax and contract compliance, estimates that companies lose 1 to 5% of EBITA due to the inadequate management of contracts and payment follow-up processes. They also report that an estimated 42 percent of companies are currently experiencing some form of revenue leakage.
Leading researchers report that companies overpay industrial contracts by an average of 3% or more. These contracts, characterized by intricate logistics, large bulk invoices, and other factors, are inherently susceptible to high error rates, even when employing state-of-the-art ERP systems. In fact, over 7% of such invoices contain significant payment errors.
CPRS’ real-time invoice analysis reveals 1 in every 15 invoices contains some form of error. Ongoing active invoice reviews have consistently exposed persistent overspending, averaging between 2% to 4%.
Most often profit leaks are due to goods and services not billed, invoice errors, delays in new offerings, and billing systems constraints. In some industries, different divisions use different software and AI systems to track different metrics. This can create data silos, which often lead to profit leakage.
But there are ways to plug leaks in the profit pipeline. A well-managed revenue assurance effort starts by identifying the areas of profit leakage and ranking them by economic value, then putting in place the expertise, tools, and processes to prevent leaks in the first place.
“CPRS is dedicated to resolving cost-related issues, leveraging over seven years of development and practical application to consistently deliver a remarkable ROI exceeding 300% on project engagements. Our results are a testament to the importance of addressing these challenges,” said Rick Beck, CEO of CPRS.
CPRS is at the forefront of the industry with its proprietary Pearl cutting-edge software stack, featuring Advanced Text Analytics driven by machine learning tools. This ensures accuracy and efficiency in identifying and resolving payment discrepancies.
By partnering with their clients, CPRS gives them a competitive advantage in performing expert reverse sales and use tax, contract compliance, retail, and accounts payable audits from their team of experts who have years of auditing experience.
CPRS’s real-time data and insights help organizations gain comprehensive visibility into their cost recovery efforts. This empowers timely identification of overpayments within a proven process, enhanced by our proprietary workflow software.
Effective contract data integration into automated systems improves accuracy and efficiency. CPRS, for instance, can improve payment recovery processes and aid prevention initiatives across various divisions, streamlining the recovery process and overall process improvements.
With billions of dollars at stake, there has never been a better time for major U.S. industries to reinforce their revenue streams and recover lost revenue than today.
To learn more, visit www.cprs-inc.com.
Source: CPRS
