80-90% of your licensees are under-reporting!
If you licence out your Intellectual Property, outsource functions such as Sales or Marketing, or take part in joint ventures, then these 3rd party relationships are likely to rely heavily on self reporting.
Contracts may relate to royalties, commission and costs to name just a few. Our approach quantifies under reporting and assists with revenue recovery.
It's all too easy to be lulled into a false sense of security with such agreements. They are, after all, part of day-to-day business activity, and certainly nothing unusual. It is fair to assume, therefore, normal governance processes also serve to ensure some degree of accuracy in this area. However, wide experience dictates up to 80-90% of 3rd party agreements are incorrectly reported.
FAQ: Why are reporting errors being made? What's going wrong?
It is entirely feasible, as an example, a simple royalty report months (or years) back contained an innocent percentage point error in calculation, and the error continues to date, unchecked. Internal process review or audit is only able to cover some elements of the reporting process, with little or no visibility over the other party.
Blue Concept Contract Review services ensure full visibility over these relationships ensuring contractual obligations are being accurately interpreted and met.
Any reporting errors are usually completely innocent, and the review process used only serves to build new levels of trust and efficiency within the existing business relationship. A clients relationship with their contracted party is a key priority throughout. We are proud of our 100% track record of ensuring client relationships are maintained or improved as a result of carrying out this activity.
FAQ: How much can we expect to recover?
The reasons above have significant financial implications. As programmes progress under reported revenue grows to a significant percentage of total.
We look forward to discussing how our approach would ensure your self reported revenue streams are fully compliant.