The ultimate checklist for the audit of incoming invoices


The ultimate checklist for the audit of incoming invoices

- (Reading Time: 

Asan accountant, the accuracy of your invoices is critical to the financial health of your business. Invoice auditing involves reviewing incoming invoicesto ensure they are correct, accurate, and ready for payment. In this blog post,we'll share the ultimate invoice auditing checklist and help you identifycommon mistakes so you can avoid them.

Why auditing is important

Invoiceverification is important because it protects your business from fraudulentinvoices and errors. Auditing invoices before payment ensures that you pay theright amount to the right person for the right goods or services. This helps avoid overpayments, underpayments and incorrect payments that can have seriousfinancial consequences.

Audit of incoming invoices - what tolook out for?

Thereare several things to consider when auditing an incoming invoice, such as:

  • Invoice number: Make sure that the invoice number matches the purchase order number and that it is unique and consecutive.
  • Supplier information: Make sure that the supplier's name, address and contact  details are correct.
  • Dates: Check the invoice date, delivery date, and payment terms to make sure they match the order.
  • Quantity and unit price: make sure that the quantity of goods or services matches the order and that the unit price is correct.
  • Taxes and other charges: Make sure all taxes and other charges, such as shipping costs, are correct. In Germany, there are several types of taxes that can appear on an invoice, including value-added tax (VAT), sales tax, and income tax. It is important to understand these different taxes and how they are calculated so that you can check them correctly.
  • Signature: If the invoice requires a signature, make sure it is present and legible.

Audit checklist - what is optional,what is mandatory?

Belowis a checklist of items to review when auditing an A/P invoice:

  • Invoice number
  • Supplier details
  • Data (invoice, delivery, payment terms)
  • Quantity and unit price
  • Taxes and other charges
  • Signature  

While this information is required for an invoice to be considered complete,additional information may be optional. For example, a description of the goods or services may be included, but is not required for verification.

Invoice with formatting errors - what to do?

If an incoming invoice has formatting errors, it may be rejected. The most common formatting errors include:

  • Incorrect invoice number
  • Missing or incorrect information about the supplier
  • Incorrect data
  • Wrong quantity or unit price
  • Missing or incorrect tax information
  • Missing or incorrect signature
  • If you find an invoice with formatting errors, you should contact the vendor and request a corrected invoice.

Invoices from abroad

In the case of invoices from abroad, additional aspects may need to be taken into account. For example, the invoice may need to be translated into German and the currency converted. It is also important to know the tax laws of the foreigncountry, as they may differ from German tax laws.

Which errors occur most frequently?

The most common errors that occur during invoice verification are incorrect ormissing invoice numbers, incorrect vendor information, and incorrect dates.These errors can lead to serious financial consequences, so it is important totake the time to thoroughly review each invoice.

In summary invoice verification is an essential task for any accountant to ensurethe accuracy and validity of incoming invoices. By following the ultimateinvoice verification checklist, you can identify and avoid common mistakes,such as incorrect vendor details and incorrect dates. This process protectsyour business from financial consequences and ensures you're paying the right amount for the right goods or services. So take the time to thoroughly review each invoice and maintain the financial health of your business.

Get started within minutes


We need only a few data for your account creation. After entering the data you will receive an activation email with which you can safely create your account.

Individual e-mail for your invoices

After logging in, you will receive an individual email to which you can send all invoices as attachments.

Assignment of roles

Set up cost centers, approvers and all other roles with our intuitive interface based on your needs. If you have any questions, we will be happy to help you.