Capture Early Pay Vendor Discounts with an Automated ePayables Solution

by Brian Edgmon @ ACOM Solutions Inc.

Mon Nov 13 13:47:51 PST 2017

If you are a B2B company, you know that processing payments efficiently is one of the best ways to maintain positive client relationships. You may also know about the high cost that can be associated with issuing payments efficiently, especially via paper checks, which is currently estimated to be $26 to $54 billion annually! This […]

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Throughput definition

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 15:19:00 PDT 2018

Throughput is the number of units that pass through a process during a period of time. This general definition can be refined into the following two variations, which are:

• Operational perspective. Throughput is the number of units that can be produced by a production process within a certain period of time. For example, if 800 units can be produced during an eight-hour shift, then the production process generates throughput of 100 units per hour.
• Financial perspective. Throughput is the revenues generated by a production process, minus all completely variable expenses incurred by that process. In most cases, the only completely variable expenses are direct materials and sales commissions. Given the small number of expenses, throughput tends to be quite high, except for those situations in which prices are set only slightly higher than variable expenses.

For operations, throughput can be increased by enhancing the productivity of the bottleneck operation that is constraining production. For example, an additional machine can be purchased, or overtime can be authorized in order to run a machine for an extra shift. The key point is to focus attention on the productivity of the bottleneck operation. If other operations are improved, the overall throughput of the system will not increase, since the bottleneck operation has not been enhanced. This means that the key focus of investment in the production area should be on the bottleneck, not other operations.

For financial analysis, throughput can be increased by altering the mix of products being produced, to increase the priority on those products that have the highest throughput per minute of time required at the constrained resource. If a product has a smaller amount of throughput per minute, it can instead be routed to a third party for processing, rather than interfering with the bottleneck operation. As long as some positive throughput is gained by outsourcing, the result is an increased overall level of the throughput for the company as a whole.

Related Courses

Constraint Management 

Transform Your Invoice Process with ACOM’s AP Automation

by Brian Edgmon @ ACOM Solutions Inc.

Fri Nov 03 15:49:04 PDT 2017

By now, most businesses are capitalizing on improved automation solutions for their AP processes. From processing invoices all the way to paying vendors, the AP department faces a lot of challenges that can be solved through innovative automation solutions. But what exactly does this mean? Streamlining processes through automation involves understanding organization needs and smoothly […]

The post Transform Your Invoice Process with ACOM’s AP Automation appeared first on ACOM Solutions Inc..

Employee Incentives: How Employee Appreciation Leads to Better Sales

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Wed Mar 07 10:46:41 PST 2018

When it comes to brand advocates, the biggest and best champions of your business are right in front of you: your employees. A happy, engaged employee is focused on the health and...

The post Employee Incentives: How Employee Appreciation Leads to Better Sales appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

How AP Automation Can Simplify Your Bank Reconciliation Process

by Brian Edgmon @ ACOM Solutions Inc.

Tue Nov 07 06:07:39 PST 2017

Bank reconciliation is a necessary but often painful process that companies should regularly complete for cash management purposes. Without an accurate picture of your company’s financial state, you could end up bouncing payments, incurring late payment fees, or end up with insufficient fund charges.  Your staff should be diligent in their record keeping to maintain […]

The post How AP Automation Can Simplify Your Bank Reconciliation Process appeared first on ACOM Solutions Inc..

The Problem with Overdraft Fees

by Paul Sisolak @ Chime Banking

Tue Mar 20 02:52:00 PDT 2018

“Overdraft” is not a word we like to hear. Why? It generally means you’ll be dinged with a fee you don’t want to pay. To clarify, an overdraft fee occurs when you don’t have enough money in your bank account to pay for a purchase. When this happens, your bank will pay for the transaction […]

The post The Problem with Overdraft Fees appeared first on Chime Banking.

Freedom of Choice & Financial Literacy: Why TruCash Is The Innovative Payment Solution For First Nations Communities

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Tue Mar 06 10:05:23 PST 2018

DCR Strategies Inc. has created a reloadable payment product for First Nations communities across Canada that streamlines payment distribution and reduces administration time and cost. The TruCash card eliminates issues related to...

The post Freedom of Choice & Financial Literacy: Why TruCash Is The Innovative Payment Solution For First Nations Communities appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

Government Debit Cards and Fraud

by Prepaid Debit @ Gift Cards and Prepaid Debit Cards

Thu Aug 28 16:51:09 PDT 2014

Why are prepaid debit cards issued by the U.S federal government or States the target of increasing internet fraud and scams? For example, when you go to the Eppicard website, you are hit with alarming warnings about Phishing. Similarly, like the Eppicard, the Direct Express card is a target. The federal government issues the direct express card […]

Direct Express Card vs Direct Deposit

by Prepaid Debit @ Gift Cards and Prepaid Debit Cards

Wed Sep 03 05:28:57 PDT 2014

One of the most often asked questions from those receiving government benefits is whether to select the direct express card option or get their benefit payment direct deposited into their bank checking or savings account. If you are not sure why this question is important, here is some background. The US Treasury Department, which is in […]

7 Ways Electronic Payments Save Businesses Money

by Brian Edgmon @ ACOM Solutions Inc.

Wed Jan 31 12:21:25 PST 2018

Across the corporate enterprise, departments are always looking for ways to reduce costs.  This is especially true in accounts payable, as reducing costs is among the top priorities of most accounts payable departments. Ardent Partners finds: One way to achieve this objective is pay suppliers electronically, instead of with a paper check.  In fact, some […]

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NJ, NY and DE Employers Hit with FUTA Tax Credit Reduction, PA avoids tax increase

by Noam Yalon @ 941 Payroll and Timekeeping

Mon Nov 26 12:03:11 PST 2012

While Congress debates how to stave off the fiscal cliff, New Jersey, New York, Delaware and 15 other states are suddenly facing higher payroll taxes

Study: Intro Bonus Offers for Travel Rewards Cards Nearly Triple in 10 Years

by Benét J. Wilson @ MagnifyMoney

Sun Mar 25 21:25:30 PDT 2018

Travel rewards aren’t just for frequent fliers anymore, as credit card issuers ramp up intro bonus rewards on travel credit cards. New research by MagnifyMoney found that the average introductory bonus on a travel rewards credit card in 2018 is now 40,556 points, more than double the average bonus in 2008 (16,050 points) and up … Continue reading Study: Intro Bonus Offers for Travel Rewards Cards Nearly Triple in 10 Years

The post Study: Intro Bonus Offers for Travel Rewards Cards Nearly Triple in 10 Years appeared first on MagnifyMoney.

Correcting Employment Taxes: What to Do If You Withhold the Wrong Amount

by Rachel Gray @ Payroll Tips, Training, and News

Wed Feb 28 05:10:52 PST 2018

It’s easy to make mistakes, especially when you have a million and one things on your plate. One error you could make is deducting the wrong amount from employee wages. Correcting employment taxes is necessary if you withhold too much or too little from your employees’ paychecks. This article provides an overview of employment taxes […]

The post Correcting Employment Taxes: What to Do If You Withhold the Wrong Amount appeared first on Payroll Tips, Training, and News.

Human resource accounting

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 16:21:00 PDT 2018

Human resource accounting involves the tracking of all costs related to employees in a separate report. These costs may include the following:

• Employee compensation
• Employee payroll taxes
• Employee benefits
• Employee training

Such an accounting system can be used to determine where human resources costs are especially heavy or light in an organization. This information can be used to redirect employees toward those activities to which they can bring the most value. Conversely, the report can be used to identify those areas in which employee costs are too high, which may lead to a reduction in force or a reallocation of staff away from those areas.

A more comprehensive human resource accounting system goes beyond the simple tracking of employee-related costs, and addresses the following two additional areas:

• Budgeting. An organization's annual budget includes a component, in which is concentrated all employee costs being incurred from across the organization. By concentrating cost information by its nature, management can more clearly see the total impact of human resource costs on the entity.
• Employee valuation. Rather than looking at employees as costs, the system is redirected toward viewing them as assets. This can involve the assignment of values to employees based on their experience, education, innovativeness, leadership, and so forth. This can be a difficult area in which to achieve a verifiable level of quantification, and so may have limited value from a management perspective.

From an accounting perspective, the expense-based view of human resources is quite easy - employee costs from the various departments are simply aggregated into a report. The employee valuation approach is not a tenable concept for the accountant, since this is an internally-generated intangible asset, and so cannot be recorded in the accounting system.

Related Courses

Human Resources Guidebook 
Payroll Management 

Stop Flying Blind with your Payments Reporting

by Brian Edgmon @ ACOM Solutions Inc.

Fri Feb 02 15:45:22 PST 2018

Analytics and reporting is all the rage in corporate boardrooms. Businesses want to know where they stand with their cash at any moment.  It is no wonder that more businesses are rethinking how they track and report on supplier payments.  A study published by Ardent Partners finds that 40 percent of businesses rank improving supplier […]

The post Stop Flying Blind with your Payments Reporting appeared first on ACOM Solutions Inc..

Exchange of nonmonetary assets

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 04:59:00 PDT 2018

An exchange of nonmonetary assets occurs when two entities swap nonfinancial assets. The accounting for a nonmonetary transaction is based on the fair values of the assets transferred. This results in the following set of alternatives for determining the recorded cost of a nonmonetary asset acquired in an exchange, in declining order of preference:

1. At the fair value of the asset transferred in exchange for it. Record a gain or loss on the exchange.
2. At the fair value of the asset received, if the fair value of this asset is more evident than the fair value of the asset transferred in exchange for it.
3. At the recorded amount of the surrendered asset, if no fair values are determinable or the transaction has no commercial substance.

There can be any number of variations on the nonmonetary exchange concept, including ones where some cash is exchanged, along with other nonmonetary assets. If there is a significant amount of monetary consideration paid (known as boot), the entire transaction is considered to be a monetary transaction. In GAAP, a significant amount of boot is considered to be 25% of the fair value of an exchange. Conversely, if the amount of boot is less than 25%, the following accounting applies:

• Payer. The party paying boot is not allowed to recognize a gain on the transaction (if any).
• Recipient. The receiver of the boot recognizes a gain to the extent that the monetary consideration is greater than a proportionate share of the carrying amount of the surrendered asset. This calculation is based on the percentage of monetary consideration received to either:
  • Total consideration received, or
  • The fair value of the nonmonetary asset received (if more clearly evident)
  • Nonmonetary exchanges of inventory should be recognized at the carrying amount of the inventory transferred (not their fair values).

• Related Courses

  Fixed Asset Accounting 
  How to Audit Fixed Assets 

NJ and PA Employers Hit With FUTA Tax Credit Reduction

by Noam Yalon @ 941 Payroll and Timekeeping

Tue Dec 13 11:32:14 PST 2011

While Congress debates how to enact payroll tax cuts to stimulate the floundering economy, New Jersey and Pennsylvania employers are suddenly facing higher payroll taxes.

Calling All Telecommunications Companies: Looking for a Competitive Edge?

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Tue Mar 27 09:32:24 PDT 2018

In the highly competitive telecommunications industry, every little advantage counts. In order for your company to stand out, you need to offer something different.   The TruCash rewards program can give you...

The post Calling All Telecommunications Companies: Looking for a Competitive Edge? appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

Turning AP into a Strategic Partner to the Enterprise

by Brian Edgmon @ ACOM Solutions Inc.

Wed Feb 21 10:28:53 PST 2018

The accounts payable function is eager to shed its image as a tactical back-office function. Most accounts payable professionals predict that their department will be “slightly” or “significantly” more strategic in the eyes of senior management within the next five years, per the Institute of Financial Management’s (IOFM) The Future of Accounts Payable survey conducted […]

The post Turning AP into a Strategic Partner to the Enterprise appeared first on ACOM Solutions Inc..

How to Turn a Tax Refund Into a Fatter Paycheck

by Tina Orem @ NerdWallet

Fri Mar 23 12:34:45 PDT 2018

Getting a tax refund may seem great, but tax pros say it’s also a sign two things could be happening: You may not be doing enough tax planning, and you…

Key Benchmarks to Measure the Effectiveness of your Accounts Payable

by Brian Edgmon @ ACOM Solutions Inc.

Thu Nov 09 09:16:09 PST 2017

Over 40 years ago, renowned management consultant Peter Drucker said, “What gets measured gets improved.” That concept is still true today, and it applies to accounts payable processing. The questions for CFOs and Controllers are, “What do I measure?” and “How do I know if my numbers are great or just okay?” The key to […]

The post Key Benchmarks to Measure the Effectiveness of your Accounts Payable appeared first on ACOM Solutions Inc..

Consumers Union statement on reports of self-driving Uber car, pedestrian fatality

by David Butler @ Consumers Union

Mon Mar 19 13:34:01 PDT 2018

  Monday, March 19, 2018 WASHINGTON, D.C. — Consumers Union, the advocacy division of Consumer Reports, made the following statement today following the news reports of a pedestrian fatality involving a self-driving Uber vehicle in Arizona: David Friedman, Director of Cars and Product Policy and Analysis, Consumers Union, said, “All of our thoughts and sympathies […]

The Equifax Hack Was Worse Than Expected. What to Do Next

by Jeanine Skowronski @ Chime Banking

Thu Mar 15 15:59:14 PDT 2018

Looks like that worst-ever Equifax data breach was … actually worse. In late 2017, the credit reporting agency divulged a systems breach exposed the personal information of 145.5 millions Americans, including names, Social Security numbers, birth dates, addresses, dispute documents, as well as some credit card account and driver’s license numbers. But the hackers also obtained […]

The post The Equifax Hack Was Worse Than Expected. What to Do Next appeared first on Chime Banking.

The Best Business Savings Account Rates in 2018

by Gabby Hyman @ MagnifyMoney

Fri Mar 23 05:00:40 PDT 2018

In this review we’ll cover: The best business savings accounts — March 2018 Community Bank of Pleasant Hill, 1.32% APY, No minimum balance Community Bank of Raymore, 1.32% APY, $25 minimum deposit to open First Internet Bank, 1.26% APY up to $250,000, ATM services BofI Federal Bank: 1.06% APY, $25,000 minimum balance, ATM access Live … Continue reading The Best Business Savings Account Rates in 2018

The post The Best Business Savings Account Rates in 2018 appeared first on MagnifyMoney.

A Look at Federal, State, and Local Minimum Wages

by Mike Kappel @ Payroll Tips, Training, and News

Wed Mar 21 05:30:00 PDT 2018

You can’t just pay your employees any amount you want. You must follow federal, state, and local laws that set minimum wages. What is minimum wage? Minimum wage is the lowest amount you can pay an employee per hour of work. You can pay more than the minimum wage, but you should never pay less […]

The post A Look at Federal, State, and Local Minimum Wages appeared first on Payroll Tips, Training, and News.

Cook the books

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 04:57:00 PDT 2018

To cook the books means that the managers of a business are deliberately falsifying certain aspects of its financial statements to give investors a false impression of the true state of the business. Alternatively, they engage in business practices to enhance financial results that are technically legal, but which will have a negative impact on the business over the long term. A number of techniques can be used to cook the books, such as the following:

Falsification activities

• Leaving the books open past the end of the month to record additional sales within the prior reporting period.
• Not recording expenses in the reporting period, even though they clearly reflect resource consumption in the period.
• Altering the terms of leasing arrangements so that the liability appears to be held by a third party, thereby keeping the liability off the entity's balance sheet.
• Falsely recording pension liabilities lower than is really the case.
• Setting up expense reserves, such as the allowance for doubtful accounts, that do not reflect the actual loss rate.
• Recording consignment sales as though they are actual sales.
• Taking a one-time charge that is set up as a "cookie jar," which can be used in subsequent periods to write off expenses and artificially inflate profits.

Business practices

• Engage in channel stuffing to sell more goods to customers than they can realistically use.
• Grant much higher credit levels to customers in order to boost sales, even though the customers may not be able to pay off the receivables.

Related Courses

Fraud Examination 
Fraud Schemes 
How to Audit for Fraud 

Answers to 18 Payroll Questions You Are Dying to Ask

by Rachel Gray @ Payroll Tips, Training, and News

Mon Mar 05 05:10:18 PST 2018

For some business owners, running payroll might be like learning a foreign language. You are a master of your business idea, not the administrative responsibilities that come with it. Because you might not be familiar with these responsibilities, you might have some payroll questions. Payroll questions and answers When you become an employer, you need […]

The post Answers to 18 Payroll Questions You Are Dying to Ask appeared first on Payroll Tips, Training, and News.

Turnover ratios

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 15:24:00 PDT 2018

A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its sales. The concept is useful for determining the efficiency with which a business utilizes its assets. In most cases, a high asset turnover ratio is considered good, since it implies that receivables are collected quickly, fixed assets are heavily utilized, and little excess inventory is kept on hand. This implies a minimal need for invested funds, and therefore a high return on investment.

Conversely, a low liability turnover ratio (usually in relation to accounts payable) is considered good, since it implies that a company is taking the longest possible amount of time in which to pay its suppliers, and so has use of its cash for a longer period of time.

Examples of turnover ratios are:

• Accounts receivable turnover ratio. Measures the time it takes to collect an average amount of accounts receivable. It can be impacted by the corporate credit policy, payment terms, the accuracy of billings, the activity level of the collections staff, the promptness of deduction processing, and a multitude of other factors.
• Inventory turnover ratio. Measures the amount of inventory that must be maintained to support a given amount of sales. It can be impacted by the type of production process flow system used, the presence of obsolete inventory, management's policy for filling orders, inventory record accuracy, the use of manufacturing outsourcing, and so on.
• Fixed asset turnover ratio. Measures the fixed asset investment needed to maintain a given amount of sales. It can be impacted by the use of throughput analysis, manufacturing outsourcing, capacity management, and other factors.
• Accounts payable turnover ratio. Measures the time period over which a company is allowed to hold trade payables before being obligated to pay suppliers. It is primarily impacted by the terms negotiated with suppliers and the presence of early payment discounts.

The turnover ratio concept is also used in relation to investment funds. In this context, it refers to the proportion of investment holdings that have been replaced in a given year. A low turnover ratio implies that the fund manager is not incurring many brokerage transaction fees to sell off and/or purchase securities. The turnover level for a fund is typically based on the investment strategy of the fund manager, so a buy-and-hold manager will experience a low turnover ratio, while a manager with a more active strategy will be more likely to experience a high turnover ratio and must generate greater returns in order to offset the increased transaction fees.

Related Courses

Business Ratios Guidebook 
The Interpretation of Financial Statements 

Take Your Timeshare Program To The Next Level With TruCash

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Fri Mar 16 09:37:39 PDT 2018

The TruCash rewards card program is a game-changer for timeshares and holiday networks as it can be used to offer monetary rewards to tour attendees, timeshare guests, owners, or timeshare staff, all...

The post Take Your Timeshare Program To The Next Level With TruCash appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

What Is an FEIN?

by Mike Kappel @ Payroll Tips, Training, and News

Mon Feb 26 05:10:00 PST 2018

When you run a business, you must meet many IRS requirements. You might need an FEIN to identify your business on documents like payroll tax forms. What does FEIN mean? What is an FEIN? FEIN is an acronym for Federal Employer Identification Number, also known as an EIN. This unique, nine-digit number is used by […]

The post What Is an FEIN? appeared first on Payroll Tips, Training, and News.

Valuation account

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 13:57:00 PDT 2018

A valuation account is paired with an asset or liability account, and is used to offset the value of the assets or liabilities recorded in the account with which it is paired. The result of this account pairing is a net balance, which is the carrying amount of the underlying asset or liability. The "valuation account" term is a less-used phrase that has the same meaning as the contra account concept.

Examples of valuation accounts are:

• Allowance for doubtful accounts (paired with the trade accounts receivable account)
• Allowance for obsolete inventory (paired with the inventory account)
• Accumulated depreciation (paired with the various fixed asset accounts)
• Discount on bonds payable (paired with the bonds payable account)
• Premium on bonds payable (paired with the bonds payable account)

The valuation account concept is useful for estimating any possible reductions in the values of assets or liabilities prior to a more definitive transaction that firmly establishes a reduction.

Valuation accounts are only used in accrual basis accounting. They are not used in cash basis accounting.

Similar Terms

A valuation account is also known as a valuation reserve or contra account.

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Bookkeeping Guidebook 

Duty to Report on Payment Practices and Performance

by Dominic Athanassiou @ SmartDebit

Mon Feb 12 23:00:39 PST 2018

We previously reported that late payments cost SMEs more than £2 billion a year, as revealed in the data published in 2017 by Bacs, the company behind Direct Debit and Bacs Direct Credit. More recent research revealed that 62% of...

The post Duty to Report on Payment Practices and Performance appeared first on SmartDebit.

Payroll records

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 12:00:00 PDT 2018

Payroll records contain information about the compensation paid to employees and any deductions from their pay. These records are needed by the payroll staff to calculate gross pay and net pay for employees. Payroll records typically include information about the following items:

• Bereavement pay
• Bonuses
• Commissions
• Deductions for pensions, benefits, charitable contributions, stock purchase plans, and so forth
• Direct deposit information
• Gross wages
• Hours worked
• Manual check payments
• Net wages paid
• Salary rates
• Vacation and/or sick pay

The information in payroll records have traditionally been stored on paper documents, but can also be recorded as electronic documents.

Payroll records can be considered a subset of the information stored in human resources records, which can contain considerably more information than items pertaining to just employee pay and deductions.

The time period over which payroll records must be retained will depend upon government requirements. The Internal Revenue Service typically states a required retention period in each document it issues dealing with payroll issues. In general, wage calculations should be retained for two years, while collective bargaining agreements should be retained for three years.

Related Courses

Payroll Management 

Understanding the Invoice Process and its Challenges

by Brian Edgmon @ ACOM Solutions Inc.

Thu Feb 08 10:07:58 PST 2018

Receiving an invoice is the first step in the AP department payment process, but many people do not understand all the steps necessary in receiving, verifying, and tracking those invoices. It can be a complicated process and involves many steps that are crucial in maintaining accurate financial records. Manual invoice processes can present challenges to […]

The post Understanding the Invoice Process and its Challenges appeared first on ACOM Solutions Inc..

PA Local Earned Income Tax New Law Takes Full Effect

by Noam Yalon @ 941 Payroll and Timekeeping

Thu Feb 16 13:28:58 PST 2012

Act 32 of 2008 is a Pennsylvania law that was passed with the intention of simplifying the way local Earned Income Tax (EIT) is paid and collected throughout the state.

Benefits of Shopping With TruCash

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Fri Mar 09 11:16:35 PST 2018

For 16 years TruCash has been helping members earn more and do more with their rewards, just by shopping at their favourite brands. Now, we are pleased to announce the new-and-improved TruCash...

The post Benefits of Shopping With TruCash appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

Bitcoin Benefits And Why Cryptocurrency Is The Future of Finance

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Mon Mar 12 09:11:46 PDT 2018

  In our first post on Bitcoin, Bitcoin, Blockchain, and Cryptocurrency: What You Need To Know, we explained what Bitcoin is, how it works, the technology behind it, and how you can...

The post Bitcoin Benefits And Why Cryptocurrency Is The Future of Finance appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

What do customers see on their bank statements?

by Dominic Athanassiou @ SmartDebit

Mon Jan 08 23:00:18 PST 2018

Having your business’ trading name on your customers’ bank statements has multiple advantages. It creates a better brand image, consolidates a good relationship with your customers, and reduces customer service time along with the receipt of indemnity claims. If you...

The post What do customers see on their bank statements? appeared first on SmartDebit.

GDPR update from ICO and FCA

by Dominic Athanassiou @ SmartDebit

Wed Feb 14 03:00:02 PST 2018

The Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO) have published a joint update about the General Data Protection Regulation (GDPR). The new legislation, replacing the UK Data Protection Act 1998 (DPA) will come into effect from 25...

The post GDPR update from ICO and FCA appeared first on SmartDebit.

The difference between an invoice and a statement

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 16:21:00 PDT 2018

A customer may receive an invoice and a statement from a supplier. What is the difference between these two documents? When a seller issues an invoice to a buyer, the invoice is related to a specific sale transaction where goods or services were provided to the buyer. Since the invoice relates to a specific sale transaction, it itemizes all of the information the buyer needs to know in order to pay the seller, including:

• Invoice number
• Invoice date
• Item description
• Item price
• Shipping and handling charges
• Sales tax
• Total amount payable
• Remit to address
• Payment terms and early payment discount terms (if any)

The intent of an invoice is either to collect payment from the buyer, or to create evidence of the sale (if payment was made in advance or in cash). If payment was made at the time of sale, the invoice is stamped "Paid" before issuing it to the buyer.

When a seller issues a statement, the document itemizes all invoices that have not yet been paid by the buyer, as well as partial payments. In this case, the intent is to remind the buyer that it has an obligation to pay the seller. Since the statement is more aggregated than an invoice, it provides less detailed information at the invoice level. It typically includes the following items:

• Statement date
• Invoice numbers
• Invoice dates
• Invoice totals

A more sophisticated statement will aggregate invoice totals by time bucket, so that overdue invoices are clearly shown.

Invoices are issued whenever a sale has been completed, so they may be issued every day and in significant quantities. However, statements are usually only issued at regular intervals, such as once a month, as part of a company's collection activities.

From the perspective of the buyer, the receipt of an invoice triggers an accounting transaction, which is an account payable. Conversely, the receipt of a statement is strictly informational - it does not trigger the creation of an accounting transaction.

It can be unwise to treat a statement as an invoice and pay items listed on the statement, since it is possible that the buyer already paid for those items, but the payment has not yet been reflected in the seller's accounting system. A better alternative for the buyer is to make inquiries about any invoices that are listed on the statement, and obtain more detailed information before issuing a payment.

There can be some confusion between the invoice and statement terms when dealing with credit card providers, since they issue a "statement" that is actually an invoice.

Related Courses

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TruCash: The Right Rewards Program For Travel Agents

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Tue Mar 20 07:07:00 PDT 2018

The TruCash rewards program, in conjunction with participating travel programs, has been designed to help augment travel consultants’ commissions by providing a safe and efficient method to distribute cash incentives to agents...

The post TruCash: The Right Rewards Program For Travel Agents appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

Should You Offer a Nonqualified Deferred Compensation Plan?

by Mike Kappel @ Payroll Tips, Training, and News

Mon Mar 26 05:10:00 PDT 2018

You know employees like employer-sponsored benefits. As an employer, offering benefits is advantageous for your business, too. A nonqualified deferred compensation plan is one type of benefit that both you and your employees can enjoy. Find out what a nonqualified deferred compensation plan is, why you might consider offering it, and how to set it […]

The post Should You Offer a Nonqualified Deferred Compensation Plan? appeared first on Payroll Tips, Training, and News.

Open Banking: is anyone outside of finance aware?

by Dominic Athanassiou @ SmartDebit

Mon Mar 19 23:00:05 PDT 2018

The revised Payment Services Directive (PSD2) and Open Banking were officially launched on 13 January 2018. The Open Banking initiative gives third parties (such as fintechs and tech companies) access to data held by the main retail banks. This promises...

The post Open Banking: is anyone outside of finance aware? appeared first on SmartDebit.

Consult This Employee Termination Checklist to Keep Things Running Smoothly

by Rachel Gray @ Payroll Tips, Training, and News

Wed Mar 07 05:10:00 PST 2018

Employees leave companies every day to pursue growth opportunities, accommodate personal lives, or experience change. As an employer, you hope employees won’t leave your business, but you know this is wishful thinking. When an employee resigns, you need to know what to do. The average annual overall turnover rate is 19%, according to SHRM. If […]

The post Consult This Employee Termination Checklist to Keep Things Running Smoothly appeared first on Payroll Tips, Training, and News.

Types of financial analysis

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 14:44:00 PDT 2018

Financial analysis involves the review of an organization's financial information in order to arrive at business decisions. This analysis can take several forms, with each one intended for a different use. The types of financial analysis are:

• Horizontal analysis. This involves the side-by-side comparison of the financial results of an organization for a number of consecutive reporting periods. The intent is to discern any spikes or declines in the data that could be used as the basis for a more detailed examination of financial results.
• Vertical analysis. This is a proportional analysis of the various expenses on the income statement, measured as a percentage of net sales. The same analysis can be used for the balance sheet. These proportions should be consistent over time; if not, one can investigate further into the reasons for a percentage change.
• Short term analysis. This is a detailed review of working capital, involving the calculation of turnover rates for accounts receivable, inventory, and accounts payable. Any differences from the long-term average turnover rate are worth investigating further, since working capital is a key user of cash.
• Multi-company comparison. This involves the calculation and comparison of the key financial ratios of two organizations, usually within the same industry. The intent is to determine the comparative financial strengths and weaknesses of the two firms, based on their financial statements.
• Industry comparison. This is similar to the multi-company comparison, except that the comparison is between the results of a specific business and the average results of an entire industry. The intent is to see if there are any unusual results in comparison to the average method of doing business.

Related Courses

Business Ratios Guidebook 
Financial Analysis 
The Interpretation of Financial Statements 

What You Need to Know About a Qualifying Life Event

by Rachel Gray @ Payroll Tips, Training, and News

Mon Mar 12 05:10:40 PDT 2018

Employees have a window of time each year to sign up for certain types of employer-sponsored insurance. Although this open enrollment period takes place at the end of each year for all employees, an employee can add or remove coverage at any time of the year if they have a qualifying life event. What is […]

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Cities and Municipalities Can Jump off the Invoice Processing Treadmill

by Brian Edgmon @ ACOM Solutions Inc.

Thu Mar 08 10:43:12 PST 2018

The accounts payable departments at cities and municipalities must feel like they are on a treadmill. Much of their day is spent on transaction processing such as: Keying invoice information Tracking down approvals Physically routing invoices Following up on approvals Resolving exceptions via back-and-forth e-mails and phone calls Keying information on approved invoices into an […]

The post Cities and Municipalities Can Jump off the Invoice Processing Treadmill appeared first on ACOM Solutions Inc..

Plan ahead with Bacs’ 2018 processing calendar

by Dominic Athanassiou @ SmartDebit

Fri Feb 09 02:00:15 PST 2018

Bacs, the organisation behind the Direct Debit and Direct Credit schemes, have published their 2018 calendar. It is available to download via the Bacs website in PDF format.     It is good practice to plan ahead and note down...

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How to Calculate a Raise

by Rachel Gray @ Payroll Tips, Training, and News

Wed Mar 14 05:10:09 PDT 2018

Employees have money on their minds. According to a Gallup poll, 59% of employees were not completely satisfied with their current pay. And, one SHRM survey found that 44% of respondents said they would leave their job to make more money elsewhere. To avoid losing their top employees, many businesses offer pay raises. Learn why employee […]

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What Does Pay Frequency Mean?

by Michele Bossart @ Payroll Tips, Training, and News

Wed Feb 21 05:10:38 PST 2018

When you have employees, you need to run payroll so they can receive their wages. Before paying employees, you need to decide on a pay frequency. Your industry, the number of employees you have working for you, the type of workers you have, and legal requirements determine your pay frequency. But first, what does pay […]

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This Spring, Clear Mediocre Credit Cards Out of Your Wallet

by Gregory Karp @ NerdWallet

Mon Mar 26 08:00:11 PDT 2018

Spring is a great time to declutter a closet full of clothes, a garage full of boxes and your wallet full of inferior credit cards. The average credit card holder…

SEPA payment scheme celebrates ten years

by Dominic Athanassiou @ SmartDebit

Thu Feb 22 06:29:02 PST 2018

The Single Euro Payments Area (SEPA) was launched ten years ago by the European Payments Council (EPC). The EPC published an article with an overview of the achievements and the future of SEPA.     How did it start? When...

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The Best CD Rates – March 2018

by Nick Clements @ MagnifyMoney

Tue Mar 27 05:00:21 PDT 2018

Updated March 27, 2018 If you are looking for a better yield on your savings, a high rate CD (certificate of deposit) offered by an online bank could be a good option. Internet-only banks offer much better interest rates than traditional banks. For example, a 12-month CD at Bank of America would require a $10,000 … Continue reading The Best CD Rates – March 2018

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Bacs announce 2017 a record-breaking year

by Dominic Athanassiou @ SmartDebit

Tue Jan 16 22:00:01 PST 2018

Bacs Payment Schemes Ltd, the company behind Direct Debit and Bacs Direct Credit, announced in a press release that 2017 was another record-breaking year for the organisation. Over 6.34 billion payments, worth a total in excess of £4.9 trillion, were...

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Will the Courts Accept a Jury Duty Excuse Letter If You’re in a Pinch?

by Rachel Gray @ Payroll Tips, Training, and News

Mon Mar 19 05:10:23 PDT 2018

Sometimes, you or your employees’ personal responsibilities conflict with your business. For many small businesses, if you miss work or lose an employee for an extended period of time, there can be harmful effects on productivity in the workplace. But if you or an employee are called in for jury duty, you might not have […]

The post Will the Courts Accept a Jury Duty Excuse Letter If You’re in a Pinch? appeared first on Payroll Tips, Training, and News.

American Express Bluebird Card Review

by Prepaid Debit @ Gift Cards and Prepaid Debit Cards

Sun Oct 12 11:40:09 PDT 2014

The reloadable prepaid debit card space is getting very crowded. The leading brands so far have been Green Dot, Netspend, RushCard, Walmart MoneyCard, Vanilla Visa and the Simon Prepaid Card. However, there is a new entrant into the market that is likely to change the dynamics of the industry going forward, especially in relations to […]

PSD2: What’s new and what is changing?

by Dominic Athanassiou @ SmartDebit

Wed Feb 07 07:00:00 PST 2018

A revised Payment Services Directive (PSD2) was implemented on 13 January 2018. The original directive (PSD) was adopted in 2007, creating a single market for payments and thus the legal foundation for a Single Euro Payments Area (SEPA). Technological innovation...

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DCR Strategies’ Book Drive For The Children’s Book Bank Toronto Charity A Page-Turning Success

by trucash123 @ DCR Strategies Inc. | TruCash Payment Solutions

Thu Mar 15 12:19:56 PDT 2018

DCR Strategies teamed up with The Children’s Book Bank, a charitable organization whose mission is to provide free books and literacy support to children, to host a special book drive in order...

The post DCR Strategies’ Book Drive For The Children’s Book Bank Toronto Charity A Page-Turning Success appeared first on DCR Strategies Inc. | TruCash Payment Solutions.

If You Insist on Paying Taxes With a Credit Card, Here’s How

by Tina Orem @ NerdWallet

Thu Mar 22 14:14:34 PDT 2018

Ask any financial expert whether you should pay your tax bill with a credit card, and the answer is almost universally the same: Don’t do it. Credit cards charge far…

Here’s How to Improve Your Credit Score Faster

by Paul Sisolak @ Chime Banking

Thu Mar 08 14:44:08 PST 2018

Good things may come to those who wait, but time isn’t on your side if you’re struggling to raise your credit score quickly. More than 30 percent of Americans have poor credit, and if you’re one of them it can be hard to improve it. Many people aim for a credit-building secured credit card, but it could […]

The post Here’s How to Improve Your Credit Score Faster appeared first on Chime Banking.

Is your website secure for online payments?

by Dominic Athanassiou @ SmartDebit

Wed Mar 21 23:00:47 PDT 2018

When collecting payments from customers for your business’ services or products, it is imperative that your website is secure for online payments. Customers and new website visitors should feel comfortable in submitting their card or bank details on your website....

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How Innovations to Your Accounts Payable Department can Modernize Enterprise Planning for 2018

by Brian Edgmon @ ACOM Solutions Inc.

Mon Jan 22 17:02:57 PST 2018

Companies today are looking for ways to improve their ability to generate, analyze, and share data across their enterprise. Better metrics not only lead to overall cost reductions, but actually increase your productivity as well. There are countless technology solutions for every area in an organization – such as CRM software to manage customer service […]

The post How Innovations to Your Accounts Payable Department can Modernize Enterprise Planning for 2018 appeared first on ACOM Solutions Inc..

The Time Is Now for Automated Timekeeping

by Noam Yalon @ 941 Payroll and Timekeeping

Wed Apr 11 13:27:18 PDT 2012

Automated timekeeping is the process of electronically tracking employee work hours and pay. It is accomplished using electronic time clocks and software to collect and process the data. The electronic clocks can be setup to read fingerprints, proximity badges, key fobs, or they can be activated by computer or telephone. Streamlining payroll procedures is more valuable than meets the eye. It is an essential tool for all businesses. The compliance environment is becoming more demanding in the face of increased regulations. Companies are working with narrower margins. Automated timekeeping provides a wide array of tangible and intangible benefits that mitigate the challenging environment. Many of the advantages are both immediate and tangible.

New ePrivacy Regulation – what is it?

by Dominic Athanassiou @ SmartDebit

Tue Mar 13 03:16:31 PDT 2018

You have read everything about the forthcoming General Data Protection Regulation (GDPR), but have you heard of the ePrivacy Regulation? The European Commission has proposed the ePrivacy Regulation to “reinforce trust and security” in the Digital Single Market. In many...

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