Startup Idea: Vendor Verification and Audit Software

Startup idea to develop a software that helps businesses in the HVAC industry and alike to verify vendors, monitor for fraudulent activities, and track finances effectively. The proposed solution should integrate with existing accounting software like QuickBooks to fetch EIN numbers, search online to verify business existence and reputation, scan bank statements for unusual activities, and provide a vendor rating system for improved decision-making.

I currently work in the HVAC industry as an accounts manager. We work with many different clients and vendors, and it is difficult to track and receive purchase orders, and deal with vendors that are supplying us with very large amounts of material.

Currently, I have an employee who is believed to be involved in a kickback scheme with one of our vendors. I have been researching methods to how to find and investigate information and evidence regarding this, but as far as kickback schemes go, this task is difficult.

Software that could help myself and other vendors steer clear of unsavory businesses or employees could immensely help my field, and I'm sure many others.

We currently use Quickbooks for our business practices, which allows you to implement Tax identification numbers for each vendor - you need these for end of year 1099. I propose that you develop software which compiles a list of these EIN numbers from QB, and searches the business directory for the state they are located in (all free online information) and verifies that they actually exist.

Also, this software could search online for any potential problems (maybe poor review searching with use of key words, or past indiscretions with the law) with using this vendor. Maybe give them a score of out of five stars based on factors found.

The checks we have been writing to this particular vendor have been cashed into a (more than likely) personal banking account. We know this because they are hand signed, not stamped, and this particular vendor has another, legitimate business which uses a deposit stamp. Something that can scan bank statements, and look for this sort of thing would have been helpful, because we have just noticed this after 7 months of dealing with this vendor.

A website that you can sign up for, and download bank statements periodically for checking for possible unsavory activity, as well as type in EIN numbers of new vendors and would check for bad(or good) business practices would be extremely helpful in vetting who we would use in the future. The vendor in particular is involved in making and installing sheet metal, so it is difficult to determine what the "average cost" of something like this would be. They don't really supply us with amount of material they use, and its all really just a large vague quote, which is the case for many vendors. The size of the jobs being done, and the large amount of money charged for these jobs make it difficult to determine whether or not we are receiving what we pay for.