Monthly Archives: June 2010

//June

Leaders in AP Continue to See Reduced Costs

When it comes to accounts payable, best-in-class companies continue to forge ahead, streamlining processes and cutting costs. In fact, a recent study, “Global Payments: Maximizing Cash Flow with Electronic Payments and Process Automation,” by Aberdeen Group found that top firms need less than five days to process a transaction. That compares with more than nine days for average performers, and nearly 16 for laggards. The top performers also have seen their AP processing costs drop by more than 14 percent annually, versus an average decline of 3.3 percent, and a slight increase in annual processing costs among the bottom 20 percent of companies. Several attributes are common to many high-performing AP departments. For starters, they are 21 percent more likely to have established centralized processing or a shared service center for accounts payable than other firms. In addition, these firms are 37 percent more likely to have fully automated their procure-to-pay processes. […]

By | June 29th, 2010|Categories: Technology, Shared Services, AP Industry|0 Comments

An Open Letter to Lavante Clients and Friends About our New Location

I wanted to take this opportunity to share some exciting news with our clients and friends.  Lavante is moving!  As of next Monday, June 28, 2010 Lavante will be expanding into a new home office at 6800 Santa Teresa Boulevard, Suite 200, San Jose, CA.   The new facility is nearly three times the size of our current [...]

By | June 24th, 2010|Categories: Shared Services, AP Industry|Tags: , |2 Comments

Come January, the backup withholding rate will change

As you no doubt know, many payments that are reported on Form 1099 can be subject to backup withholding, including interest and dividend payments, rents, profits, and commissions. Backup withholding comes into play under certain circumstances, such as when the payee neglects to provide a taxpayer identification number (TIN) or the IRS sends the payer [...]

By | June 24th, 2010|Categories: Tax ID Numbers, 1099 Reporting|0 Comments

Unlocking trapped working capital from your supply chain (Notes from Spendmatters.com analysis of Basware and Lavante partnership announcement)

Lavante's recent activities were covered this week by an industry expert. Jason Busch of SpendMatters.com spent some time exploring the new Lavante/Basware partnership diving a little more deeply into why such a partnership would take shape.  Astutely, Busch points out that neither firm has played at "superficial Barney deals" (read: "I love you, you love me") [...]

By | June 24th, 2010|Categories: Technology, Supplier Information Management, Lavante|Tags: , , |0 Comments

Free Webinar on 1099 Reporting Changes (from 2010 health care bill)

Download the "New 1099 Tax Laws" Webinar for free! We are still celebrating a huge success surrounding last Friday's webinar.  With very limited outreach efforts, we overbooked the capacity of our web cast provider and we retained all attendees for the entire event.  Anyone well rehearsed in presenting webinars will acknowledge bth of these data points as [...]

TIPRA Section 511: Mandatory 3 percent withholding on government purchases

One provision within the 2006 Tax Increase Prevention and Reconciliation Act (TIPRA) is generating concern on the part of both businesses and governmental agencies. Section 511 requires many government agencies to withhold three percent from most payments for products or services they purchase. The change applies to government agencies with annual procurement budgets of $100 million or more, and to most purchases $10,000-plus. Some types of transactions are exempt from the legislation, including payments of interest and payments to tax-exempt organizations. This provision initially was to go into effect for payments made after December 31, 2010. However, the stimulus package, AKA the American Recovery and Reinvestment Act of 2009, delayed the effective date for one year. Now, purchases made after December 31, 2011 will be subject to the mandate. […]

By | June 16th, 2010|Categories: AP Industry|0 Comments

Tackling The “Middle Ground” of Payments

A growing number of businesses today are tackling the “middle ground” of payments – or the spending that falls between very low- and very high-ticket items, and that is done with suppliers that may not be high-volume, but that still invoice regularly, according to a recent report by J.P. Morgan. After all, the ends of the payment spectrum already have been taken care of, at least at many companies. Purchasing cards usually work well for low-dollar, frequent purchases, while ACH capably handles high-dollar transactions. To target this group of payments, which so far, has largely been paper-based, companies are turning to single-use accounts. They’re also expanding their use of p-cards. […]

By | June 8th, 2010|Categories: Technology, AP Industry|0 Comments

SaaS and “SaaSification” at AMR Supply Chain Executive Conference Sponsored by Ariba.

I am currently on site at AMR's Supply Chain Executive Conference, and I sat in on an extraordinary session called "Supply Chain in a Cloud."  The presentation was sponsored by Ariba and presented by AMR heavies, Mickey North Rizza and Dennis Gaughan.  I have plenty to say about the research results and the light that AMR [...]

The Summary of the 1099 Reporting and Tax Legislation changes

The Summary of the Tax Legislation changes Section 6041 of the Internal Revenue Code outlines 1099 reporting requirements.  The Patient Protection and Affordable Care Act includes an Amendment to Section 6041 which now requires 1099 reporting for any payments aggregating $600 to a supplier per year The new amendment will now create requirements for reporting for: All for-profit corporations (excluding tax-exempt corporations) Payments made for Property (goods, merchandise, supplies, raw materials, equipment, etc.) Companies will be required to submit accurate TIN information or face monetary penalties The provision in the health care law is aimed to reduce the gap between income that individuals and businesses make and the federal taxes they pay, which the Government Accountability Office estimates is $345 billion The Wall Street Journal says Congress hopes the new 1099 provision will collect $17 billion more in federal taxes and fees. What has been changed? […]

Payment Card Fraud

A recent study by Richard J. Sullivan of the Federal Reserve Bank of Kansas City looked at security within the payment card industry. As its title indicates, “The Changing Nature of U.S. Card Payment Fraud: Issues for Industry and Public Policy,” focuses primarily on potential public policy responses to payment card security. Even so, it offers insight and information of use to accounts payable professionals. Since 2005, at least 2,221 breaches of card data in the U.S. have been made public; these encompass nearly 500 million records. Just eight extraordinarily large breaches – TJX, TD Ameritrade and Heartland Payment Systems, to name a few – account for about four-fifths of these records. So, while nonbank payment processors accounted for just two percent of the breaches, these covered nearly 40 percent of the records compromised. Nearly two-thirds (64 percent) of breaches are the work of outsiders. However, more than a fifth are a result of accidental disclosures by insiders. […]