Why Do You Need A Uniform And Linen Audit?

Why Do You Need A Uniform And Linen Audit?

By News Desk | The Trent on March 2, 2021
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linen audit

Are you aware the linen loss is around approximately $850 million each year? As per market research IBS, the losses are high even for an industry with revenues crossing $5 billion. If you want to cut line loss in your enterprise, you need to consider a uniform and linen audit. Here are some reasons why you need a linen audit.

What Is a Linen Audit?

The linen audit refers to the scientific method of analyzing uniform and linens charges. It analyzes the actual linen charges that appear on the bill and compare it with figures that should have appeared on the bill as per the original contract.

The uniform and linen audit reveals whether your company has been overcharged. Detecting such inaccuracies and anomalies in the bills is easier by analyzing historical billing data. The analyst compares the recent billing data with the original contract’s information that helps detect the excess charges.

What Are the Services Offered?

  • The lined auditing service conducts billing audits of all major service providers, including reputed providers Aramark, Cintas, Alsco, and many more. The auditing service can also conduct billing audits of local and regional service providers.
  • The auditing service evaluates the costs of every line item charge mentioned on your invoice. It also evaluates your vendor contracts to get information on the charges.
  • A detailed report is created after analysis which contains all overcharges and errors. It also explains areas of cost savings.
  • The auditing service will use its decades of expertise in your current agreements and help you get the best rates. They will also check proprietary databases of vendor pricing and get the best rates from all uniform and linen service providers.
  • The linen auditing service will implement contract terms and conditions that protect your business interests and not that of the vendors.
  • It will monitor all current charges in your uniform and linen expenses. A team of professionals will work to bring the costs to half.

How Can Linen Auditing Services Help?

Show Areas Where the Costs Can Be Reduced

The lined auditing services have a team of experts who are good at spotting areas where money can be saved. The linen industry has several service providers that enter into monthly contracts that can be quickly changed when required.

If your company is interested in long-term contracts due to some benefits, the auditing service will check the contract terms and give their report. If needed, the auditing firm will initiate some changes in the contract on your behalf to protect your best interests.

Inventory Management

The auditing agency is also known to implement efficient inventory management practices at the client’s location. The auditors will perform an audit of your company’s linen room. According to lines audit experts, inefficient inventory management and disorganized storage can lead to losses.

You need to understand that linen expenses are not limited to uniforms and linens alone; several areas exist in your business with great potential for savings. An expense audit will bring essential things to light like how the money is being spent, is there any scope to trim costs and save money. If the audit discovers any past overages, you can claim refunds from your linen service provider.

What Other Areas Can They Help in?

Most auditing services can also unearth savings in Phone and Internet, Electric Water and Gas, Property Tax, and Waste Recycling. The auditing services can cut through the red tape and help your company get the refunds faster.

Why 3rd Party Auditing Is a Necessity?

Most businesses hire 3rd party linen auditing services as the auditors are unbiased. They have the expertise and years of experience to detect hidden losses that might go unnoticed otherwise. Most linen auditing services have experience working in different environments. They are also knowledgeable about the best practices that can lead to more significant savings.

They can study existing contracts and suggest some changes that will lead to significant savings. A neutral linen audit service provider will make neutral assessments and reviews of your business processes and systems that your internal staff cannot do.

The linen audit service can render an accurate review of occurrences in varied environments. Internal audits are less effective as they utilize most resources available and divert your attention from core business functions. When you hire a linen audit service, you can let them perform audits to discover savings while your staff focuses on core competencies related to revenue generation.

To sum up, these are some of the reasons to hire uniform and linen audit services. The auditing service can also conduct a property tax review to ensure you pay the right amount of property tax.

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