Mary Arnold, Author at Financial Operations Network - Page 2 of 9
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archive,paged,author,author-mary-arnold,author-2,paged-2,author-paged-2,ajax_fade,page_not_loaded,,qode_grid_1300,footer_responsive_adv,hide_top_bar_on_mobile_header,qode-theme-ver-16.8,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.0.3,vc_responsive
 

Author: Mary Arnold

[vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text] Non-Compliance Risk in 1099 Reporting Are you a gambler? Do you look forward to a conference in Las Vegas so you can get in a little action? How about when it comes to IRS compliance? No doubt it would be a thrill not to hear from the IRS if you veer widely outside of the lanes of IRS compliance. But what are your chances? VendorInfo has answers in its newly published survey report 2019 Vendor Onboarding Management & Compliance Survey. The report looks at three potential consequences of compliance failure: B-notices, 972CG Notice of Proposed Penalty, and audit for review of compliance with respect to accurately documenting and validating payees. In the first case, B-notices, a failure to include a vendor’s tax ID number (TIN) on a 1099 or a mismatch between vendor name and TIN on the 1099 will result in receiving a “B-notice.” The “B” is for backup withholding, which is required when you lack a correct TIN for a vendor. What you actually receive is a notice CP2100 or CP2100A from the IRS. Upon receipt, you have to take certain steps right away in order to either correct the problem or begin backup...

Introduction 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: [unordered_list style="circle"] 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 [/unordered_list]   [button size='' style='' text='DOWNLOAD...

[vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column width="2/3"][vc_column_text] Your checklist for ensuring vendor onboarding compliance and certification Companies’ vendor interactions are surrounded by a number of compliance requirements that add complexity to the procure-to-pay process and the supposed simplicity of paying the bills. A few vendor-related tasks that are driven by compliance requirements must be completed in the initial stages of a vendor relationship. These include vendor trading status validation and verification of critical vendor information including tax identification number and tax classification. Best practice is to include appropriate steps in the vendor onboarding process to ensure compliance with trade and tax laws. This information-packed report will help you: [unordered_list style="circle"] Learn about government maintained sanctioned or blocked entity lists, such as The Treasury Department’s Office of Foreign Assets Control (OFAC) Recognize risks to your organization if caught doing business with an individual or entity on these lists Determine your responsibility regarding watch-list entities and how you can protect your organization Understand your responsibilities for tax identification and classification of new vendors Discover best practices for W-9 and W-8 processing Learn why TIN verification is so important and avoid the penalties for incorrect TIN reporting to the IRS and states And much, much more! [/unordered_list] [button size='' style=''...

If you could affordably automate a time-consuming and interruptive task, you would do it, right? “Yes, but.” Solutions are often put to us simply. But our minds immediately go to possible problems in the plan. “It’s not that simple,” we think, and a number of “What-about’s” occur to us. When it comes to automating a targeted process like vendor invoice inquiry, one of those “What-about’s” should be security. How do we allow vendors access to the information they want while protecting our systems and data from compromise? At the same time, we’re concerned with usability. A vendor self-service system needs to be simple. If it’s not easy to use, vendors will skip it and just call — back to costing us time and money. So a useful vendor inquiry system must be simple enough that vendors will use it, but secure enough to guard the organization’s systems and digital assets. These are questions an organization should ask of any vendor portal solution provider: How do you keep our system and data secure? Is it easy to use? Make sure you understand the answers. The answer to the latter question will be evident. You will be able to see and understand whether a solution will...

What do errors cost? In baseball, sometimes the game. What about in business, in particular data errors? A quality management concept developed by G. Loabovitz and Y. Chang quantifies the cost of error prevention versus remediation versus failure. It’s the 1:10:100 rule. The authors determined hidden costs of errors expand exponentially. In their studies they found that if prevention costs X dollars, then remediation in the case of failure to prevent the error costs ten times X dollars, and the consequences of bad data left uncorrected are one-hundred times X dollars! Remediation costs more than prevention, and failure costs more than remediation. The focus, often on remediation, should be put on prevention. Our forebearers said things like “A stitch in time saves nine” and “An ounce of prevention is worth a pound of cure.” The principle is the same, but the professors have quantified it in their eye-opening rule. The rule has implications and applications for P2P. Leading experts like Judy Bicking point out the fallacy of saying “We don’t have time” to do something right the first time; you end up having to make more time to fix it. The 1:10:100 rule warns that it’s going to cost you a...

Are you crafty? Handy? Do it yourself? Many of us like doing things by hand — some things, anyway. But let’s face it, there are other things we’d rather not have to do manually. How about in our P2P lives? More specifically, how are organizations accomplishing vendor onboarding these days? Have companies automated, or is it still largely a manual process? This question is included in the latest survey from VendorInfo. The new survey will be released soon, but here is a sneak peak at the answer to this question. When it comes to onboarding new vendors, the process for most organizations is [drum roll please]: still manual. Yes, a year away from 2020, and the majority of organizations are still pushing paper forms out to new vendors to fill out and send back. The good news? There appears to be movement in the right direction since last year’s survey. Sixty-two percent of participants indicate they onboard new U.S. vendors manually. That’s down from 69 percent a year ago. When foreign payees are specifically called out, the percentage is 63, which actually represents a big improvement over 2018. Roughly a quarter of organizations utilize both manual and automated processes for onboarding. Those that say their...

Enlightened self-interest says looking out for others is a good way to look out for us. Fundamentally a business is created to meet someone else’s needs in order to meet its stakeholders’ own, and is successful when it does so. However, occasionally we get lucky. Something we must do to look out for ourselves also brings direct benefit to our customers. In the realm of accounts payable, our “customers” are those we serve, including managers, purchasers, the tax department, and of course, vendors. Vendor relations are an important aspect of vendor management, and accounts payable (AP) has a significant part to play. But a tension exists between AP’s competing demands, including its role in supporting good vendor relations. Into the execution of AP’s multiple responsibilities come interruptions. Inquiries from vendors about their invoices and payment status take AP away from the very work of moving invoices forward to payment. And vendor inquiries often come via purchasing — creating a double interruption from the company standpoint. On one hand, AP has a need and responsibility to reply to the vendors. But on the other, the calls or emails and the responses to them interrupt AP’s work of actually getting vendors paid, at significant cost. So suppose AP can...

In every endeavor success entails analyzing problems, finding options to solve them, making decisions, prioritizing actions and execution. Problems come in all shapes and sizes. Complex challenges must be broken down into executable pieces. More serious challenges bring with them additional pressures to find options and make decisions. These days, the broad challenges included in most management performance goals often center on increasing the value of those outcomes for which the manager is responsible. It’s nice, when identifying opportunities and prioritizing steps to reach them, to find some things that can be done quickly to realize benefits or clearly demonstrate movements in the right direction. The old phrase for those things is “low-hanging fruit,” what our grandparents often called “easy pickings.” But that phrase can carry with it a negative tinge. Especially if it refers to things that bring immediate gratification, but do little for long-term gain. If it’s an avoidance of harder work to be done, it might be merely a distraction disguised by momentary gratification, like a grab at the candy bowl. On the other hand, picking the “fruit” in reach may be the most sensible thing to do. Targeted process automation is a case in point. Replacing specific manual processes with...

It’s January and we’re taking a break from our usual topics to ask: Have you reset your mileage rates? In case you missed it, the IRS announced a change for 2019. The deductible rate for mileage has increased as of January 1. The new rate for business mileage (for cars, vans, pickups or panel trucks) is 58 cents, an increase of three-and-a-half cents over the 2018 rate. Rates for medical or moving purposes increased two cents to 20 cents per mile, while the rate for charitable organizations remained unchanged at 14 cents. Businesses may reimburse employees for business miles at whatever rate they wish, whether at, less or more than the IRS-set rate. However, any reimbursement greater than the IRS rate of 58 cents per mile must be reported as income to the employee. Most organizations polled reimburse at the IRS rate, while a few reimburse under the IRS cap. Despite the current lower gasoline prices, the new rate is the second highest in the last 20 years, a half-cent less than the rate for the period of July – December 2008. That year saw a precipitous rise to record heights in the price of oil (more than double the start of...

Have you made resolutions for the New Year? Good for you! Though statistics may be against the majority of us seeing them through, make them anyway. We all need a reset from time to time. Take the New Year as a fresh start. Make at least a modest change and gain will result (even if you aren’t still doing next November what you start this January). In our personal lives, there are a host of possible resolutions — Lifehack.com lists 50 resolutions for the New Year! No doubt they don’t intend for every reader to adopt the entire list, but there’s no better way to guarantee failure than having too many resolutions. Resolutions require change and who finds that easy? Scaling that back to just a few — hey, even one — seems a better route to success. One pundit proposes resolving in three areas: health, happiness and character. Do something for your health. Do something that makes you happy. Do something to grow your character. Don’t do 50 things; but do something. In our work lives the New Year offers a new start as well. At the end of the year, we stand back to look at how things went. Hopefully the year...

Stop Calls and Emails, Enhance
Service and Increase Profit!

InvoiceInfo saves labor hours and cost by helping suppliers and internal staff easily and instantly get answers online to their invoice-payment questions.

If you are like many finance leaders today, you are being challenged to reduce costs more quickly. InvoiceInfo delivers real bottom-line results almost immediately, allowing you to deploy your customer service staff to focus on more productive, bottom-line oriented tasks.

Let us show you how InvoiceInfo's vendor self-service portal can help your organization eliminate invoice inquiry emails and calls while enhancing service to your accounts payable customers.

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Get Up and Running Quickly and Seamlessly

InvoiceInfo and VendorInfo are standalone applications that can be up and running in as little as two weeks, with little or no IT resources required.

The faster your online portal is up and running, the sooner you will start reaping the benefits. InvoiceInfo and VendorInfo are dedicated solely to helping AP and procurement departments slash the time and expense of servicing vendors, while improving customer service for their suppliers.

InvoiceInfo and VendorInfo are simple solutions with big results. They are easy to implement and easy to use. Here’s how one customer described the process: “You give vendors a URL, provide instructions about what they need to know and tell them to go use it.” It really is that easy.

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Improve Productivity with a Self-Service Solution

For most organizations, deploying a technology solution is a significant investment, and like most investments, the decision point ultimately comes down to the expected return on that investment.

According to a recent benchmark study by The Accounts Payable Network, 60% of AP customer service calls are from vendors while 40% are from internal customers. Vendor issues actually make up even more of the AP call volume than the 60% identified. Many times when a vendor has an issue, the vendor contacts their buyer or purchasing representative, who in turn contacts AP. Even though the call comes from an internal customer, the question originated with the vendor.

Vendor calls affect productivity in your organization exponentially. When vendors call the requisitioner, they are affecting that person’s productivity. Your internal customer’s productivity shrinks when fielding the vendor’s call and again when making the follow up call to AP and getting back to the vendor. Finally, AP’s productivity suffers as a result of the internal customer’s call, the payment status research and the follow-up communication.

With a minimal investment of IT time and talent, you can start reducing customer service calls and expense in a matter of weeks. In addition, you improve vendor relations since you are giving your vendors what they want — answers to their questions immediately — a win-win for everyone involved!

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Easy and Economical Solution to Serve Vendors Around the World

InvoiceInfo can help you provide best-in-class customer service to your vendors around the world at a fraction of the cost.

Many organizations today have offices and operations throughout the world and are dealing with many time zones, different languages, and in some cases multiple ERP systems. InvoiceInfo currently supports different languages and can easily work with multiple ERP systems in different locations.

The key to good customer service is to provide the information that the customer wants when they want it. Whether your customer is a vendor waiting for a payment or a colleague that needs information on payment status, they want their information right away. If your organization has vendors and offices in other countries, they can be challenging and expensive to serve. But, with InvoiceInfo, your international vendors and internal customers can access the information they need when they need it.

With InvoiceInfo, you won’t have to staff your customer service team with 24-hour coverage in multiple languages to provide high-quality customer service around the world.

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Enhance AP’s Role As a Strategic Partner

Learn how InvoiceInfo can help AP do more with less while continuously improving productivity and bottom-line results.

Many automation technologies such as scanning, workflow, e-invoicing, ACH, and electronic invoicing require significant investments of money, time and talent, making it difficult to get buy-in from upper management. Not InvoiceInfo!

If your goal for your AP department is to reduce costs quickly, call or email us today to learn more about how InvoiceInfo can help you achieve this goal through a quick, inexpensive and easy implementation of a vendor self-service portal.

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Enhance Vendor Relationships

InvoiceInfo helps suppliers’ AR departments with simple and convenient access to invoice payment status online at a cost savings for all involved.

It may seem that the organization paying the vendor should hold all the cards in the relationship. But sometimes the opposite is true. Past-due payments and customer service perceptions can harm supplier relationships and disrupt the supply chain.

Your vendors and vendor relationship managers are living in a dynamic, fast-paced environment, so when invoice information is required, it is needed quickly and expected to be of high quality. With InvoiceInfo, your suppliers get answers to invoice inquiries real time, 24/7 with no need to leave messages and wait for responses. Studies show that confidence in data increases when suppliers access invoice and payment information themselves.

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Give Procurement and Buyers the Tool They
Need to Respond to Vendors Quickly

Not only can InvoiceInfo be used by suppliers to learn the status of invoice payments, it can also be used internally within your organization.

In addition to reducing calls from vendors regarding invoice status, you can also reduce internal emails and calls from co-workers wanting to learn the status of invoice payment, and save time and effort and boost efficiency and productivity across the organization. Studies show that 40% of AP customer service calls are from internal customers. Many of these are from requisitioners who have received calls or emails from the supplier checking on payment status. These calls are often more expensive for the company because the internal staff member has taken the call or received an email from the supplier, contacted AP for the payment status and had to return the call or email the supplier.

By providing the vendor with a convenient and credible online option to get the answers it needs regarding payment status, you can eliminate multiple calls/emails between the vendor and the requisitioner saving time and money.

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Eliminate Difficult Vendor Calls and See
Productivity and Staff Morale Soar

Reduce invoice payment inquiries and “promote” your vendor service team to more satisfying and profit-producing tasks.

By sharply reducing inbound calls and emails regarding receipt and payment status that your AP staff must handle individually, your staff can focus their efforts on more productive, cost-saving activities, learn new tasks, feel more confident and boost their careers.

According to a recent American Express survey on customer service, more than one-third of consumers have lost their temper with a customer service professional in the past year. Of those who lost their temper, three in ten “hung up the phone.” Your staff will no longer have to deal with difficult collectors who can be upsetting and disruptive. Your staff will feel that their time and talents are being put to better use and will feel better about themselves, their jobs and their organization. Reducing these calls can be a real productivity and morale booster for your AP department!

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Simplify and Streamline Vendor Onboarding

According to Price Waterhouse Coopers, the average organization spends about $20 in labor to file each paper document, approximately $120 in labor searching for each misfiled document and $220 in re-creation of a document.

Wouldn’t it be great to have all your W-9’s, W-8’s and other registration documents completed online and instantly filed online for easy access when needed? With Vendor Self-Service Onboarding Module, VendorInfo, you can onboard your new vendors in one convenient location and eliminate paperwork and hassles.

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Verify the Accuracy of Vendor Information and Stay in Compliance with IRS and Treasury Department Regulations

Government regulators are increasing the complexity of regulations and penalties associated with vendor-related non-compliance.

Penalties for incorrect 1099’s have more than doubled in recent years. Over the last several years, OFAC has levied more than $1 billion in fines against American companies or subsidiaries that did business with restricted businesses, organizations and individuals on its SDN list. In addition to fining these companies, the Treasury Department posts the names of infringing organizations along with fines paid.

VendorInfo Onboarding Module verifies the accuracy of vendor information and helps protect your organization by avoiding embarrassing penalties and fines.

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