Finding hidden costs in vendor invoices

By Jesse Sanchez. 

Automated invoice review can help contractors catch pricing discrepancies, reduce administrative work and protect profitability. 

For contractors managing a growing volume of material purchases, even small invoice discrepancies can add up quickly. On this episode of Roofing Road Trips®, Heidi J. Ellsworth spoke with TW Woodward of InvoiceIQ about how technology can help contractors verify vendor pricing and uncover costs that might otherwise go unnoticed. 

As companies grow, TW explained that one of the biggest challenges is finding enough time to review every invoice line by line. Contractors may have negotiated pricing with vendors, but frequent material price changes and differences between purchasing channels can make it difficult to confirm whether each invoice reflects those agreements. Describing the challenge facing busy back offices, TW emphasized, “You just don't have enough time in the day to set somebody down and try and go line after line to look for where your money's missing.” 

InvoiceIQ is designed to automate that review process. Contractors upload vendor price lists, including multiple versions based on effective dates and invoices can then flow into the system automatically. From there, the technology compares individual line items against the appropriate pricing information. TW explained, “It matches it to the price list. And then it starts going line by line by line by line, just saying, 'Hey, is this the right SKU? Is this the right price?'” 

Each week, the platform generates vendor-specific reports highlighting discrepancies that may warrant further review. TW shared that one roofing company identified $500 in potential overcharges during its first week using the system and later received credit memos from the vendor. 

Beyond recovering money, the verification process can also provide greater confidence in contractor-supplier relationships. With documented pricing available for comparison, contractors can address discrepancies without relying solely on manual reviews or uncertainty. Reflecting on that benefit, TW noted, “It can certainly remove that from the equation,” referring to the distrust that can develop when pricing discrepancies repeatedly arise. 

For contractors, that visibility can support more accurate job costing while reducing the administrative burden of checking repetitive purchases. Rather than replacing an existing accounting or business management platform, the technology is intended to address a specific back-office challenge through a largely automated process. 

Listen to the podcast or Watch the conversation to learn more about how automated invoice verification can help contractors uncover pricing discrepancies, protect job profitability and bring greater confidence to vendor relationships!