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01.01.08 101 Ideas to Improve Every Area of Your AP Dept.
Over 500 AP professionals responded to our recent questionnaire that asked: What was the best idea you used over the past year to enhance your AP department’s operations? more...
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06.18.08 P-CARDS: New IOMA Research Reveals What Drives P-Card Growth the Most
A purchasing card (p-card) program benefits AP by cutting the cost of invoice processing. That’s because the p-card is used to purchase low-dollar items, eliminating all those small-dollar invoices that would otherwise have to be processed. Therefore, growing your p-card program to its optimal size—which will be different for all organizations—is the order of the day. more...
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11.07.07 Independent Contractors: Avoid the Hassle & Expense of Worker Status Disputes
The misclassification of employees as independent contractors has reached “epidemic” proportions, said attorney Robert W. Wood, a partner at Wood & Porter (San Francisco). more...
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05.12.08 Global AP: 14 Tips Ease the Challenges of Managing Int’l AP
When an organization goes global, AP has to go global right along with it. But you’ll fare just fine no matter what country your organization lands in if you follow the advice of Cherry Donnelly, APM, accounting operations manager at Aegon Direct Marketing Services Inc. For the last six of her 19 years at the company, Donnelly has been responsible for the AP, treasury, and cash control areas. more...
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11.07.07 Exclusive Research: Top 5 Ways to Improve Your AP Department in 2008
Improving systems and procedures is the leading strategy AP departments use to enhance their performance. This is revealed in IOMA’s latest survey of over 500 readers who told us the ideas they used over the past year that were the most successful in changing or improving their AP operations. more...
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11.07.07 "Big Bang" Theory a Bust For AP Automation
Washington Mutual had grown from a small, Seattle bank into a national financial powerhouse with more than 2,600 retail outlets and 50,000 employees working in four strategic business units. The company wanted to move its suppliers to electronic invoicing. In addition to the technology challenge, the company’s organizational dynamics also presented an obstacle—the company had a fractious and complex political situation. more...
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04.28.08 Latest Cost Benchmarks Help AP Analyze and Control T&E
One of the ways AP can add value to the organization is in the area of spend analysis. And in these tough times, one great area to focus on is T&E. After all, T&E is the second-largest category of controllable costs, after payroll. And AP is in the catbird’s seat with respect to T&E analysis. Why? Because all of the T&E cost data resides in AP. more...
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11.01.07 Exclusive Research: What Metrics Do AP Shared Service Depts. Track Most?
The key word in the term AP shared service is "service." To make sure service levels are up to par, AP managers need to monitor performance using key performance indicators (KPIs). For example, are AP staffers processing their fair share of invoices? How can you determine this if you don’t track how many invoices they process per month? Also, every AP manager wants to improve departmental performance. You can’t do this without tracking KPIs through a benchmarking initiative. more...
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11.01.07 Paper-Free AP: How One AP Dept. Went From Zero to 86% E-Payments
Best-practice AP departments seek to move their disbursements from paper checks to electronic payments. This reduces costs and eliminates the possibility of check fraud. There are a number of key considerations in moving from paper checks to e-payments. One AP department’s story should serve as a model and inspiration to other U.S. companies that are prepared to go global with e-payments. more...
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10.01.07 New T&E System: Build or Buy?
When Iowa State University (ISU) went shopping for an electronic employee reimbursement system, most of the off-the-shelf products did not meet the school’s requirements. more...
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10.01.07 Research Identifies New Paradigm for AP Automation
In the pages of MAP, we have presented cutting-edge ways AP managers have leveraged automation to trigger benefits far beyond those of merely improving invoice processing. These ideas include advanced discount management, spend analysis, cash management, and strengthening ties with the purchasing area and vendors. more...
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04.01.08 Rule Makers Look to Ease Tax Treatment of Biz Cell Phones
The Treasury Department is interested in a Congressional proposal to update and liberalize the rules governing the taxability of cell phones and other mobile communication devices provided by employers, according to Treasury Secretary Henry Paulson. more...
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10.01.07 How LaSalle Moved Its Paper Invoices to Front-End Imaging
It was the dawn of the new millennium, and LaSalle Bank was in the dark ages in the way it handled its invoices—it was paper-based and decentralized. In 2001, the AP department decided to move from paper invoices to imaging. But they did not go directly to their current front-end imaging setup—they first went to a back-end imaging program. Along the way, AP realized that going paperless is not just about transitioning to electronic documents—it’s about improving workflow. In the end, AP gained centralized real-time control over its invoices, streamlined processing, reduced AP staff, and significantly lowered its expenses. more...
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03.01.08 10 Best Tips for Moving AP to a Centralized Setup
Virtually all world-class organizations have moved their AP operations into a shared-services environment, according to the Hackett Group. The benefits of centralizing AP are clear—and substantial. What’s more, according to our recent research, 92% of AP shared services pros we surveyed said the actual benefit met or exceeded their expectations. The trick is making the transition. more...
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03.01.08 AP Managers’ Forum: How AP Can Cash In On 'Treasury Bonds'
AP has many ongoing problems that have to be dealt with—from preventing check fraud to eliminating rush checks. Wouldn’t it be great to find an ally in the organization who wants the same thing as you do—to make the payment process as efficient and effective as possible? more...
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08.17.07 Exclusive Research: Eight Key Trends in Electronic Invoicing
Here are preliminary results from new research we’ve conducted on electronic invoicing. This research will serve as the basis for an update to our research report, Paperless Accounts Payable: The AP Department’s Complete Guide to Electronic Invoicing. more...
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10.01.07 5 Best Practices AP Pros Use to Make Shared Services a Success
The main reason that decentralized AP operations are consolidated into a single shared services center is to reduce costs and improve customer service. Are these benefits actually being realized? And what are the keys to success? That’s what we recently asked AP pros who have had success in transitioning to shared services. more...
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08.17.07 AP Manager's Forum: Benchmarking Helps AP Dept. Do More With Less
When Power/mation Inc., a high-tech distributor, went through a downsizing, the accounting staff was cut in half. But it still had to eke out more cost savings and improve efficiency. more...
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08.01.07 How to Use Salary Surveys to Lure—and Keep—Good AP Workers
Salary surveys are extremely useful because they help make sure you are offering salaries that are competitive in the marketplace. Otherwise, you risk losing good AP workers, and you can have trouble recruiting additional staff. In addition, organizations use salary surveys to plan their annual merit and pay increase budgets. more...
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08.01.07 Boost Your Invoice Imaging With Data Capture Technology
At our recent conference in Chicago dealing with AP technology, several AP managers related positive experiences they have had with data capture tools—technology that reads the invoice once it’s scanned so that the data does not have to be input manually. more...
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08.01.07 REL/CFO Study: How Does Your DPO Stack Up?
Monitoring your days payables outstanding (DPO) metric is important because it is a key component in your company’s formula for calculating working capital. Companies must maintain the proper amount of working capital to pay for daily operations and to finance future growth. So if your DPO is out of whack, it will throw your company’s working capital out of whack, too—and you’ll get someone from the CFO’s office knocking on your door. more...
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02.23.06 Questionnaire Gets AP Internal Controls Into Shape for the New Year
Now's the time to kick off the new year with a checkup on AP internal controls. Corporate financial misdeeds have routinely been in the news, so it has become more important than ever to have mechanisms in place to ensure adequate corporate governance. Since AP is the gatekeeper with respect to a company’s cash outflow, it is a key player in the internal controls arena. more...
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01.01.07 Coping With the 5 Top Problems of a New Imaging System
The use of imaging to automate the invoice process is gaining steam, according to several surveys IOMA has conducted. Our research reveals the main problems you can expect to encounter if you implement a new imaging system--and how to overcome them. more...
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03.01.07 AP Pros and Consultants Say Automate—or Perish
At our recent 5th Annual AP Conference and Expo, MAP caught up with several AP professionals and consultants, and we asked them this question: What do you see as the major trends in AP and what does the future hold? From their remarks, one thing was very clear—and startling: AP departments must evolve from a transactional orientation to providing more value-added services. Otherwise, they will vanish. more...
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01.01.08 AP Managers’ Forum: How AP Pros Upgrade Staff Skills
In AP today, there is a lot of attention given to upgrading processes through automation. Plus, AP is evolving into more of a strategic business partner. But what about upgrading your staff? They must have the skills that match the advances you implement and support AP’s new strategic role. Savvy AP pros offered some good ideas in response to our latest AP Management Survey. more...
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06.13.07 1099 Workers: Court Nixes Company's Plea to Use Safe Harbor Over Freelance Payments
Companies have been put on the hook for millions of dollars in back taxes for paying workers as 1099 independent contractors when they should have been classified as employees subject to income tax withholding. Plus, the Internal Revenue Service is stepping up its efforts to ferret out noncompliance in this area (see the accompanying sidebar). more...
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11.07.07 Information Reporting: Museum’s Woes Over Recruitment & Relocation Payments
The Smithsonian Institution is known for its historical relics. But the museum didn’t realize that it had another ancient item in its collection—its policy on moving expense reimbursements and recruitment payments. more...
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02.01.07 Four Key Criteria for Selecting an Imaging/Workflow Vendor
Over a third of AP pros we recently polled say they plan on using imaging to automate the invoice process. Add to this the number of companies currently using imaging, and around 70% will have imaging up and running in the near future, according to IOMA’s AP Department Benchmarks and Analysis 2007. more...
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04.14.07 Experts Offer Tips on Curbing Destructive Office Politics
Have your AP workers been gathering by the water cooler more than usual? Are there flurries of e-mails? Have you seen passive-aggressive work slowdowns? If so, there may be a severe case of "office politics" going around. Human nature being what it is, office politics is simply a fact of the work world, but experts agree that there are steps to take that can minimize the negative effects. more...
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05.09.07 How to Avoid a Sales Tax Nightmare in Your P-Card Program
When you implement—or grow—your p-card program, the last thing you want is a sales tax surprise. The states have been eyeing the growth of p-cards and are aware that with this growth comes the increased chance that companies will fall out of compliance with sales and use tax rules. That’s why you need to minimize the risk that the states will come in and slap you with a huge bill for back taxes and penalties. more...
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11.01.07 Automated Data Input Boosts AP Productivity at AIT
Moving paper invoices through the system at AIT Worldwide Logistics (Chicago) was anything but efficient. Plus, the company was growing, and the AP department was expected to handle nearly 200,000 invoices a year, representing almost 1.3 million transaction lines. Invoices coming in via the mail were date-stamped upon receipt and sorted alphabetically by hand. Then, overnight, a second team of AP associates sorted the invoices by urgency, type of vendor, and availability of discounts. The entire sorting process took about 8.5 hours to complete. Plus, slow data entry and a cumbersome remittance process translated to a four to six week payment cycle, so trade discounts were lost. more...
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03.01.07 AP Manager Uses Vendor Add Form to Keep File Clean
Lauren Broskow, AP Manager at La Petite Academy, had a master vendor file with thousands of unnecessary records. After much work, these records were eliminated. The next problem was keeping the file clean. more...
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04.14.07 What Specific Duties Do Today's AP Departments Handle?
AP departments today deal with a wide range of tasks. But you may be surprised to learn that most do not deal with tasks such as travel or purchasing card administration, foreign currency payments, bank recs, VAT refunds, or escheatment. more...
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04.01.07 AP Managers Forum: Paperless Routing Takes Heat Off AP
The AP department at High Point Regional Health System was being blamed for the increase in rush checks. The hospital felt that the increase in rush checks was due to overall processing delays in AP. But was this true? "We needed a way to track where everything was and to determine where the bottleneck areas were in the invoice process," says Brandy Drake, APM, senior accountant, and AP supervisor. more...
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04.01.07 Is Web-Screening AP Job Candidates a Good Idea?
While all AP managers agree it is necessary to screen job candidates before making an offer, is it OK for you to use search engines or social networking sites in the process? According to experts, it is for the most part perfectly legal. But whether the information gleaned is relevant or even accurate could be another matter, privacy advocates and others tell us. more...
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04.01.07 New Ruling Spotlights Relief From Worker Status Tax Woes
The issue of whether a worker is an employee or an independent contractor has irked AP managers for a long time. Companies have been hit with millions of dollars in back tax bills for misclassifying employees as independent contractors. Companies must withhold employment taxes on wages paid to employees—but there's no withholding on payments made to independent contractors. more...
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04.01.07 12 Steps to a Better AP Policies & Procedures Manual
Whether it’s invoice processing, p-cards, or employee expense reimbursements, the use of formal policies and procedures in the form of a manual is absolutely essential—not only from a procedural standpoint, but from one of control. more...
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10.01.07 8 Ways to Get the Most out of Employee Appraisals
It’s getting to be that time of the year—when you have to do those employee performance appraisals. In the past, AP managers may have given this task little attention. But growing productivity and performance demands, plus the new generation of workers who want more detailed feedback about their performance, have put a renewed importance on the appraisal process. more...
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03.01.07 Company Achieves 80% Paperless Invoices— With No Hefty Technology
Many AP departments think they need to spend an arm and a leg on new technology—imaging, workflow, electronic invoicing—to rid themselves of paper invoices. Wrong! You may be able to eliminate the bulk of incoming invoices by using a low-tech solution: Evaluated Receipt Settlement (ERS). more...
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03.01.07 How AP Pros Made a Rock-Solid Case for New IWA Technology
Traditionally, AP has not been high on the priority list for receiving funds to invest in new technology projects. That’s changing somewhat, as the top brass realizes that significant savings can be triggered via AP automation. But that doesn’t mean it’s now a walk in the park. more...
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08.17.07 Use of Service Level Agreements Grows in Shared Services AP
AP departments in a centralized or shared services setup will be relying more and more on written Service Level Agreements (SLAs) to manage their operations. This is according to a recent survey we conducted of over 100 AP departments that have centralized or moved to a shared services environment. more...
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08.12.06 Be Careful When Firing a 'Problem' AP Staffer
Probably the most dreaded task of any AP manager is firing someone. And it can be worse when you have to fire an employee who has been a "problem." That is, an employee who has shown angry or violent tendencies. The worry is: How will he or she react to the firing? Of course, the termination can be done by HR—but that doesn’t mean everything will be okay. The fired employee could still vent his or her anger at you. more...
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02.01.07 AP Pro Uses Metrics to Slash Rush Checks by 85%
The results of a recent mini-survey on our new AP information portal, Accounts Payable360.com, reveal that making requesters jump through extra hoops is the best way to cut down on requests for rush checks. "Require extra approvals" was cited most often as the best strategy AP360 members have used (see the graphic.) Coming in a close second was to approve the rush check request only in an "emergency." … more...
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08.01.07 Thinking of Outsourcing? Here Are Some Keys to Success
Not every AP department has the resources or expertise to do all of the functions it needs to—so that’s where outsourcing comes in. In our ongoing research into AP best practices, we examined the current state of outsourcing in AP and identified the factors for success—as well as some obstacles you may encounter. more...
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02.01.07 How Closely Are Vendors Eyeing Your Invoice Deductions?
Adjusting invoices for defective merchandise, returns, shortages, and the like is commonplace in AP. But just how closely does the vendor examine these deductions? Answer: It depends on the amount. Deductions under a certain threshold amount are automatically accepted by vendors without question—and many vendors never even keep track of them. This is revealed in the 2006 Deduction Study from the Credit Research Foundation (CRF). more...
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