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“Business travel … will take a long time to return to previous levels after the COVID-19 pandemic.” So said McKinsey last August. In December, Bill Gates said he expects 50 percent of business travel "will go away." Heads of major airlines do not expect a return to former levels for several years. By last April, business travel plunged. Business air travel in 2020 was down by 80 percent. McKinsey forecasts a slow recovery for business travel, and in phases. The first phase is likely to see regional travel involving personal vehicles or rental cars for face-to-face sales or client meetings and essential business operations, primarily in manufacturing, pharmaceuticals and construction. In the second phase, domestic air travel improves. Travel purposes begin to include internal meetings, training and other small group gatherings. International travel will not rebound until the third phase, tempered by government regulations and restrictions. This will coincide with a return to industry trade shows, conferences, exhibitions and large-scale events. These phases are not tied to dates--or to 2021--in McKinsey's discussion. McKinsey says that travel managers and directors tell them they closely monitor local indicators of public health and government regulations, plus employees' willingness to travel and vendors' health and safety policies. Several...

30 December, 2020

Vendor Information To do business with a vendor, you must have information. Vendor onboarding is the time to gather and validate the particular information you need. All organizations require the same basic information. Likewise, everyone must do certain validations. But some information requirements and validations depend on your organization type and perhaps even on your customer type. What is your charter? Commerce? Health care? Education? Government? There may be particular information needs you have or validations you must do those others don't. If you are in health care, for example, and receive funds from federal health care programs, you must check vendors against the List of Excluded Individuals and Entities (LEIE) of the Department of Health and Human Services. You may be a private company doing business with the government. If so, in addition to the basics, you may need to know if your vendors have certain business statuses. Maybe your organization is small—your information item list might be smaller too. Following is a comprehensive list of items of vendor information that includes the basics along with some that are specific to certain types of organizations: Vendor name Business name if different (DBA) Parent/subsidiary relationship(s) Ownership, principal owner Address: street, city, state, zip, country ...

21 December, 2020

A Refresher What is a non-U.S. person? You need to know the answer to that in the context of payment reporting to the IRS. What income of a non-U.S. person do you have to report? These are just two of the many questions that arise when you gather tax IDs and classifications in preparation for 1099 and 1042-S reporting. Did you know the U.S. tax code does not explicitly define non-U.S. persons? Rather, the code defines them by exclusion. The code defines a U.S. person. If one is not a U.S. person, then by definition of exclusion, they are a non-U.S. person. Easy! We should point out here that “person” has a broad definition that includes entities as well as individuals. Entities are corporations, trusts, partnerships and estates, as well as individuals. Any entity formed under U.S. laws is considered a U.S. person, and for our purposes here, is subject to 1099 reporting. (Said persons should submit a W-9 to your organization.) Oh, and one more thing. Resident aliens are considered U.S. persons too. Those persons and entities that do not fall within those are non-U.S. persons. You report the payments you make to them on a 1042-S. They should submit their tax information and...

08 December, 2020

A broken P2P process generates vendor inquiries. When a vendor contacts your organization about an invoice, AP has an opportunity to do more than solve the immediate question or problem. Vendor interactions offer AP a chance to fix process problems, reduce inquiries, and improve vendor relations. But in customer service, AP often can’t see the forest for the trees. Accounts payable customer service staff are focused on the immediate call or email. There is an appropriate urgency to it. But in failing to take a broader perspective, AP misses the opportunity to resolve underlying problems, which would better serve the vendor and eliminate future inquiries. The 2020 Accounts Payable Customer Service by Financial Operations Networks finds that 53 percent of organizations have a response-time policy that governs vendor inquiries. Certainly, if you want good vendor relations, you want your team to be responsive to your vendors. But there is a potential problem lurking in a “response time” policy. Be careful what you ask for. Commonly, AP faces a slew of emails or phone messages. The response-time metric reinforces the notion of "getting through them." The person focuses on answering the inquiry and moving on to the next. But if there is a process-related problem,...

24 November, 2020

Someone is out to get you. Hackers are working full time. And with your team working from home now, you face greater risk. Cyber-criminals are constantly working to find soft spots or weak links in your organization to exploit. And hackers study human behavior and are good at manipulation. When everyone first started working from home, their organizations addressed security items like VPNs, Wi-Fi security, bolstered passwords and multi-factor authentication. But even if those ducks are lined up, there is a key vulnerability that remains: people. Employees working at home must be alert and cautious to maintain security. Fraudsters employing social-engineered cyber-attacks seek to exploit fear, uncertainty and doubt. People under stress make a good target. The bad guys use common tools to break into systems: email, text messaging and phone calls. As the pandemic spread and the remote working environment was hurriedly set up, attacks that referenced COVID-19 leapt way up. (We are now halfway through autumn, and COVID-19 is on the rise again.) But not all attempts to breach security fly a COVID flag. The common pre-pandemic techniques still work. You might get an email that looks like an internal system-generated notification of a voicemail. It includes a link to access the message. If...

10 November, 2020

Ready, set … check your vendor tax IDs. We’re well into the 4th quarter. It's time to think about 1099 reporting. That means having correct tax IDs for your vendors. First, you need to be sure you have a tax ID for each vendor. Second, you will save trouble later if you take the time before you file 1099s to verify your vendor TINs through the IRS TIN Matching program. (It’s better to have done this at vendor onboarding!) And as you get set for 1099 reporting, be aware. This time around (as you read here a year ago) you have a new form 1099 to file. 1099-NEC To report non-employee compensation for 2020, you must file the newly revived form 1099-NEC (non-employee compensation). The change is an effort to sort out the confusion resulting from the shift in reporting deadlines enacted in the 2015 PATH Act. The Act required you to submit 1099-MISCs by January 31 if they included non-employee compensation reporting in box-7. “NEC” reporting now has its own form. Never fear, our old friend 1099-MISC is also still required. Use the 1099-MISC to report royalties, rents, health care payments, etc., as before. Those are due to recipients by January 31st and to...

23 October, 2020

Have you gotten yours? Not tricks or treats, nor a political surprise. The other October surprise: CP2100s! Twice a year, in spring and fall, the Internal Revenue Service (IRS) sends out forms CP2100 and CP2100A. They address missing or incorrect taxpayer-identification numbers (TINs) on 1099 payment reporting. Whether you get a form 2100 or 2100A depends on the number of bad TINs. If you are a recipient, you must act. Your response depends on the particulars of each notice. Here’s a quick refresher on what to do. Incorrect TINs First, check the vendor TIN in the IRS notice against the TIN in your records. Are they different? Then an error was apparently made in the 1099 filing. Correct your records as necessary. You do not have to send a B-notice to the vendor, but ensure you report the vendor’s correct TIN next time. However, if the TIN in the CP2100 matches what you have as the vendor’s TIN, the TIN is incorrect. In that case, you have 15 days to issue a “B Notice” (“B” for backup withholding) to the vendor. The B-notice explains that they need to send you a corrected TIN (stat!) or you will begin backup withholding. If you do not receive a...

12 October, 2020

When a vendor does not receive an expected payment, they contact you to find out what’s up. If payment has been late in the past, many vendors will not wait until payment is due. They’ll call to confirm that you got their invoice, or to ask when to expect payment (putting you on record). There are many reasons for vendor inquiries. But there is a correlation between imperfect processes and vendor calls. The most commonly identified challenge to good “customer” service is some aspect of the procure-to-pay (P2P) process itself, says Financial Operations Networks’ 2020 Accounts Payable Customer Service Survey. Get the Big Picture, then Drill Down Vendor calls and emails can point you to problems in your procure-to-pay process. Pay attention to the frequency and type of inquiries you are receiving. Don’t just answer the individual questions. Step back and look at the big picture. It’s tough to do when you are scrambling just to get all the inquiries addressed. But sometimes you have to push back the urgent to focus on the important. What is behind those questions? Have you got a gap, or gaps, in your P2P process? Seek out the root cause of the problems and address them. Maybe it’s sequencing. As...

28 September, 2020

Disruption happens. And when it does, expectations are replaced by uncertainty. In the case of the Coronavirus, that uncertainty has no apparent endpoint. The consequence is tremendous anxiety. If you are a leader, your staff looks to you for direction. Leaders must manage the anxiety that can lead to bad decisions or behaviors[1], and decreased productivity. In the aftermath of 9/11, businesses realized the importance of disaster recovery and business continuity planning. Many companies without it did not survive. The difficulty of such planning is that it cannot see that for which it is supposed to prepare. Planners draw up plans against best-guess scenarios such as fires, floods and earthquakes. Now those scenarios include terrorist attacks and mass shootings. It's a grim job, and planners labor in the face of the unknown. But who anticipated the possibility of a pandemic shutdown? Very few. Nine months in, there is still a lot of uncertainty. The end is not yet in sight. What can leaders, whose crystal balls are no better than their staffs, do to manage the anxiety and keep things moving? How do you provide direction, inspiration and hope? You don’t have all the answers. But in the face of the uncertainty, you have...

15 September, 2020

It is that time of year. IRS Notices 972CG, proposed penalty notices, are out. The IRS typically starts mailing the notices in late July. The process continues through August. How do you “qualify” for a 972CG? Try filing 1099s late. Or fail to file at all! Penalties are also assessed for filing 1099s in the wrong format. Do you have more than 250 1099s to file? Then you must file electronically, not on paper. The other big way to get a penalty assessment is to file 1099s with incorrect or missing taxpayer ID numbers. (We told you to get and check those W-9s!) And you’ll get zinged for “any combination” of the above. See the penalty rates here. But—good news—you might not have to pay the full amount shown on the 972CG. The form is a proposed penalty, not a final assessment. It is possible to reduce the amount or persuade the IRS to waive the proposed penalty altogether. To avoid part or all of the penalty, though, you must act promptly. You have 45 days to respond to the Notice. If you look at the list of offenses and see that they’ve got you dead to rights, just return the acknowledgment, payment slip and your...

01 September, 2020

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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