05 Apr 2019 Vendor Onboarding Management & Compliance Survey
Vendor onboarding is a process that involves obtaining, verifying and recording information about the vendor to enable not only vendor transactions, but also organizational compliance with various tax and regulatory requirements. An organization’s accounts payable department needs to know more than where to send the payment.
Vendor onboarding is not especially difficult, though understanding and addressing the details involved in compliance can be challenging. Failure to adequately onboard vendors can lead to a variety of costly problems. Necessary internal controls protect against vendor fraud, payment fraud and employee fraud. Acquisition of all requisite information ensures compliance with federal and state tax and other authorities.
Financial Operations Networks conducted a survey to provide a picture of survey respondent organizations’ current vendor onboarding and compliance practices. Download this survey to learn:
- Which department is most often responsible for managing vendor onboarding along with managing the vendor master file.
- If vendor onboarding is still largely a manual process or automated
- How long it takes to onboard a new vendor or update a vendor profile
- How many approval levels are required
- Which department is responsible for vendor validation
- The percentage of respondents that verify new vendors through IRS TIN Match Program and OFAC and other sanctions lists