Profit Recovery is a business practice in which an audit firm conducts a rigorous review of a company’s disbursement records to uncover funds that may be due back to the enterprise, such as duplicate payments, overpayments and credit deductions. For a fee, the audit firm then pursues recovery of these lost funds. The services provided by profit recovery firms can range from an initial review to the complete modification of the company’s accounts payable systems to address underlying issues that are causing duplicate or overpayments. Companies that would benefit most from a profit recovery audit include those that have a high volume of purchase transactions, significant changes to their accounting systems, recent mergers or acquisitions or have complex and variable sales tax jurisdictions.
American Profit Recovery is a nationwide debt collection agency that collects debts for a variety of businesses including landscaping companies, funeral homes and schools. While the Better Business Bureau regards American Profit Recovery as legitimate, consumer reviews are less than positive and they have been subject to many complaints. Taking on a debt collector like American Profit Recovery can seem daunting but you can protect yourself by knowing your rights and using the right tools to fight them.
The cost recovery method of revenue recognition is the most conservative way to recognize revenue. It allows you to recognize a sale as profit only when the cash collected from a receivable has recovered the total cost of your inventory. This method is particularly useful when you aren’t sure that a client or customer will make their payments.
Achieving a good revenue recovery rate can be difficult. It requires a combination of preventive measures, continuous monitoring and effective communication with your customers. While these steps are essential to keeping your churn rates low, they can be time-consuming and expensive. Fortunately, there is software that can automate this process and save you both money and time.
It’s important to respond quickly to debt collection letters from American Profit Recovery. If you don’t, they can file a lawsuit against you, garnish your wages or put liens on your property. The best way to respond is by sending a Debt Validation Letter, which forces them to prove that the debt is valid before they can take any further action. You can easily create a Debt Validation Letter in minutes using SoloSuit.