Reducing Payment Errors by 56% With Continuous Improvement

A leading European company, known for its innovation and focus on excellence, thought their purchase-to-pay processes were in great shape. With strong controls and advanced systems, they wanted to validate their efforts and make small improvements to stay ahead.

What Transparent found was far beyond their expectations. Instead of minor inefficiencies, we uncovered €800,000 in erroneous payments during the first project. Beneath the surface, we highlighted critical follow-up gaps and overlooked processes that had gone unnoticed.

Transparent’s recommendations didn’t just solve a problem—they sparked real change. The bank now has a stronger, more reliable system and has significantly reduced payment errors.

“When the client came to us, they were confident everything was under control. They expected we would recover maybe €10,000 or €20,000 in erroneous payments. When we found €800,000 and showed the root causes, they were genuinely surprised. It completely changed how they looked at their processes.”

– Sjoerd Gonggrijp, Sr. Delivery Manager at Transparent

When we began the Accounts Payable Recovery Audit, we focused on analyzing transactional data and reconciling vendor accounts. The key to our success lies in how we work with vendors.

By contacting them in their native languages and using accurate details from our enriched database, we achieved a 95% response rate—an exceptional result in Accounts Payable. This high engagement allowed us to uncover hidden credits, duplicate payments, and other costly errors that had been overlooked.

But we didn’t stop there. We dug deeper, identifying the root causes of these errors—gaps in follow-up processes and inconsistencies in the way data was managed. Understanding why these issues occurred was critical to delivering long-term value for the client.

At the project’s end, we ensured the client was set up for success. We cleansed and updated their vendor data, providing accurate contact details and eliminating inconsistencies. This made the audit process smoother and ensured that future follow-ups would be faster and more efficient.

In our first project with the client, we uncovered and recovered nearly €800,000 in erroneous payments. These included duplicate payments, unposted credit notes, and other unallocated claims. While the client was confident in their existing controls and systems, the sheer scale of the findings was unexpected.

We didn’t just identify the issues—we dug deeper to uncover the root causes and provided practical, actionable recommendations tailored to their needs. Here’s a glimpse of what we found:

Duplicate Payments

Root causes:

• Typographical errors in recording invoice details.
• Poor-quality invoice scans leading to unclear or miscategorized information.
• Suppliers resubmitting invoices to expedite payment, particularly when delays occurred.

Our recommendations:

• Standardize the recording of invoice numbers to ensure consistency and prevent duplicates.
• Require suppliers to provide clear and unambiguous invoices when scanned copies are unclear.
• Avoid backdating purchase orders or processing ad-hoc invoices for PO-based suppliers, as these practices create gaps in process oversight.

Unposted Credit Notes

Root causes:

• Credits sent to the wrong department or missed entirely by the appropriate team.
• Supplier accounts were not regularly reconciled to statements, leaving open credits hidden for months.
• No consistent process to track and address outstanding credit notes.

Our recommendations:

• Establish clearer communication between account managers and the AP team to track and process credits.
• Incorporate routine supplier statement reconciliations into daily operations.
• Centralize company codes wherever possible to simplify and streamline processes.

The client didn’t just take our recommendations—they acted on them. They created a dedicated team to manage follow-ups and oversee flagged issues. The results were transformative.

By the time we conducted a second project to assess their improved controls, we recovered €350,000—less than half the initial amount. This wasn’t a failure but a success: a clear sign that their new processes were working to address the root causes of errors.

The client’s proactive approach and commitment to improvement have built a more resilient and efficient system. Today, they work with Transparent year after year to ensure they stay ahead of issues, solving problems before they grow.

For many finance teams, expectations and demands keep rising year after year, even as budgets shrink and teams grow leaner. New technologies are regularly introduced, and teams work hard to adapt and deliver. But as tech stacks grow more complex, it’s not always clear if the processes in place are truly working as intended. Are errors slipping through unnoticed? Are the controls actually making a difference?

At Transparent, we help companies gain the visibility they need to answer these questions confidently. By identifying the root causes of inefficiencies and delivering actionable insights, we empower our clients to take full control of their processes.

If you’re ready to take a closer look at your operations and ensure everything is as accurate and effective as it should be, we’re here to help. Let’s work together to support your journey toward continuous improvement.