Bills 2.0

5 Questions You Should Ask About Business Bill Payment With Your Bank

The majority of consumer bill payments are now made online. That is not the case for the bills you pay for your business. Most business bill payment is still made the old fashioned way: Printing, signing and mailing checks. Once that is done you have to follow up on whether your vendor received payment and reconcile with your accounting system.

If you are and SMB and thinking about doing electronic payments for your business using your online banking system, here are 5 questions you should ask yourself first (and make sure your needs are met!):

1. How will you access everything you need when you are making payment decisions? If you are like most businesses you need to refer to past payments, contracts, notes and lots of other information before authorizing each payment. Where does this information reside for your business today? When you are making online payments will you have to access other systems or make trips to the filing cabinet to get answers? If so, how much time does that take?

2. Is it easy to manage cash flow while making payments? Most banking systems will only show your current balance without reflecting outstanding past payments, future payments and payroll. When you schedule payments you'll need to make sure you'll have enough cash to cover those payments or else fees could add up. How easy is it for you to access that information today? If this is a requirement for your business you should look for a system that integrates cash management and banking.

3. Do you need to provide multiple people in your company access to the bill payment process? Unless you are a very small business you may need help managing the books either with additional staff or an outside accountant or bookkeeper. Does your banking system give you the controls to allow multi-user access or are you left doing manual work because your staff can't? You'll need to decide if you have the time to spare.

4. How much time are you willing to spend repeating yourself? If you make a lot of payments or pay a lot of vendors you'll end up doing a lot of duplicate data entry between your banking and accounting systems. This is especially true if your vendors change their remittance addresses often. You should make an honest assessment of how much time it will take to manage this process and whether it is worth it. We've spoken to businesses who pay hundreds of dollars a month in late fees due to mistakes so it can add up!

5. Are electronic payments with your bank really going to be free? At home, the majority of our payments are made to large vendors (banks, utilities, etc.). They are done electronically (not by check) and they are free. At work you will want to pay SMBs, individuals, and employees electronically to save yourself hassle, ensure payments are received on time, avoid vendor follow up, improve reconciliation, and eliminate mailing errors. Those payments are usually not free from your bank. Make sure you are clear on who you want to pay electronically and what it will cost from your bank.

Key Takeaways:

• Businesses should be benefiting from online/electronic payments just like consumers, however we have very different requirements
• Make sure that the system you choose for bill payment for your business meets your requirements at work, not at home
• Be careful that you are not being penny wise but pound foolish by taking on extra work using a "free" consumer-oriented service when you should be focused on growing your business!

Ask Lacerte: Affect or Effect?

One thing I have learned about innovation is that it is easier and more successful when you are embracing change. Either you are affected by change or you can effect change. Every day, we have a choice, and my suggestion is to be the person effecting change.

When you are the person effecting change, you set the rules on what will change and how. You don’t wait for the world to tell you what’s next; you find out and lead the way. You get to pick what mountains to climb, what shortcuts to take, and enjoy the vistas before anyone else is there. It is hard work, but you, your team and your customers get the benefits before anyone else. Whether it is efficiency gains, improved accuracy or cost benefits, innovation provides a huge competitive advantage.

I know accountants that use innovation to increase their revenues and profits significantly over national averages. Sometimes, they are leveraging technology innovations from startups; sometimes they are redefining what “accountants” do and sometimes they create new solutions within their firm that take them two steps ahead of the competition.

Unfortunately, innovation is harder than you think. My folks started five businesses over the past 50 years. And several years ago, after starting my second business, my mom said something very interesting: “If you knew how hard it would be, you never would have done it.” When you are in the middle of innovating, I think this statement rings true. But the corollary is that there is “no better high than successfully innovating.” Once you are able to reap the rewards of the innovation, you forget all the pain and challenges and go on to your next one. This is because once you have effected change, you become addicted (if you’re anything like I am). Change is fun, it is where we learn the most and feel the most alive. Embracing change is hard, so here are a few tips that I have picked up along the way.

First, be passionate about the things you want to innovate. Having an internal compass to guide you along the path of innovation is invaluable. Use your passion as your compass. Innovation requires “gut decisions” that are much easier to make when you care deeply about something. While customer input is invaluable, often in the early stages of innovation, customers may not know what they want. It is the innovator’s job to stay passionate and committed to their vision. I am reminded of a quote from Henry Ford where he said, “If I had asked customers what they wanted, they would have said faster horses.” The other benefit of innovating things that you are passionate about is that you won’t mind the hard work as much.

Why is it harder? It’s simple. Visionaries/innovators see the future clearly with their solution in place. We do not see all the edge cases, problems and challenges in creating the solution. We only see the benefit. Being passionate about your innovation will help you remain focused when it is easy to be distracted. Staying focused is one of the hardest things about innovating. Since it takes longer and is harder than expected, there are many distractions that require a certain “devotion” to your cause in order to make it happen.

Second, there are no stupid questions. The first time I heard this was in kindergarten, but I don’t think I really understood it until I was well into my thirties. In kindergarten, I thought this was about making sure everyone got a chance to talk and ask a question. Later, I realized it was about encouraging kids to ask questions that others might also have. And now I think the benefit is that innovation is often a chain reaction of disparate ideas often first surfaced thru disjointed questions.

The challenge of the person leading the innovation is pulling it all together and encouraging the questions. Recently, I was at a negotiating class where the speaker was recanting a story of how he was the first to negotiate exclusive rights to advertise during the Olympics for his industry. Given the amount of money at stake, he had a board meeting with top executives to discuss before signing.

When he asked the question, “Is there any reason not to do this,” the most junior person in the room said, “What if the Olympics are canceled.” His first reaction was to say, “that’s ridiculous,” but instead he continued to ask and encourage others to ask more questions. In the end, he had the network sign a clause saying they would get their money back if for some reason the United States didn’t attend the Olympics. The contract was for the summer games of 1980, and we all know what happened — we boycotted the games.

Finally, have a great team. Innovation is only as good as the people doing the innovating. As I mentioned earlier, visionaries often gloss over the details and need help from their team doing the innovating to iron out the kinks. The real innovation happens with the details — where the rubber meets the road. So what makes a great team? They need to be passionate, they need to ask questions and they need to be eager to try new things. The last point is really important. Teams that resist change make innovation harder if not impossible. You can’t lead a revolution if you have people coming up with reasons to stay put.

For those who have read this column before, you know that I have a penchant for relating life to the music I have grown up with. As I write this, I am reminded of a song from Blood, Sweat and Tears called “Spinning Wheel.” While the words in the song would be hard pressed to be about innovation, the title and group are all about innovation. There is no more basic and elegant innovation than the wheel, and as we all know there is a lot of blood, sweat and tears involved with any change. Good luck effecting change in your business! 

Rene

(Originally printed in the July 2010 Issue of the CPA Technology Advisor)

Ask Lacerte: Where does data go to die?

Now that I have your attention, let me explain my rhetorical question. One of the topics covered in this issue is about accounting products and how to select the one that works best for you and your clients. While there are many things to consider, I would add the following: Does the accounting package allow your data to stay alive or does it just sit there like a wet noodle, dead on arrival?

Accounting, by nature, is historical and data driven. The recognized “Father of Accounting” was an Italian monk, Luca Pacioli. Pacioli taught accounting to the merchants of Venice, but he was more at home with and interested in math. In fact, one of his students was Leonardo da Vinci. Most of our accounting principles came from one chapter in a treatise on mathematics from 1494. Clearly, our roots in accounting are a bit more scientific than we may have realized and are prone to be numbers focused. Unfortunately, as we have all probably learned by now, “lying with numbers” is a possibility that happens all too often.

When you just look at the numbers, you are missing the bigger picture. As an entrepreneur, I feel that the transaction view is not complete unless you have an “end-to-end” view of what makes up the transaction — the story behind the numbers. For example, knowing that you paid ABC Incorporated last month is interesting, but what about the contract for ABC Incorporated, all the bills/invoices you have ever received from them, all the cleared check images from them and the notes of yellow stickies with comments and directives attached to those bills. All of that information is part of the transaction — the notes, documents, payments and history. Just looking at the numbers is like not seeing the forest for the trees.

Speaking of trees, try this analogy on for size. We have a family tree on my dad’s side that goes back to 1500. When I first looked at the tree, I saw lots of names that didn’t mean that much to me. But when I started to read the story along with the tree, it became far more interesting. And when I got to the last 100 years and had pictures, letters and videos, I got a much better sense of what the tree means. The tree in and of itself is like the data in a typical GL package — interesting but not complete or “alive.” But if you add the stories, the pictures and the videos you get a much more complete picture of the data and the corresponding transaction.

The last 10 years of my career have pointed out to me that the processes behind the accounting transactions are as important as the record of the transaction. To date, accounting software has been focused more on the record and not the process. All of that is changing with the growing adoption of web-based services. As you evaluate your accounting software solutions, you might want to consider the following:

• Does the accounting product seamlessly incorporate the supporting documents? I can’t tell you how many times I have drilled down on a P&L only to be stumped when I got to the original transaction and wasn’t able to see the actual invoice or supporting contract. Ideally, you should get the documents into your solution with an email, fax or scan from you or your vendors/customers.
  
• How connected is the accounting software to your bank? More and more information is getting to the point of being just a click away from your bank. When a vendor calls and asks if you have paid them, it is handy to know the date that the check cleared. Or if a customer says they paid, it’s pretty useful to know the date the deposit hit your account. Given the fast moving pace of online banking, this should be a given in any application considered.
  
• How well does the product allow collaboration between you and your clients? Accounting and the processes surrounding the books are an iterative and collaborative process. All the comments, approvals, denials and questions should be attached to your transaction forever. You never know when you’ll be curious about the details and not have the same folks on the job to ask.
  
• Does the product leverage dashboards that you can customize? We all know that there are basic dashboard items such as cash flow that every business needs, but we also know that every business has its own buttons. The advent of dashboards enables you to customize what your clients and businesses need to run their business. These simple tools give the business owner what they need at a glance and will make them thank you over and over.
  
• Finally, in the age of going mobile, how web-centric is the application? Increasingly, the web is extending the boundaries of work. As many in the valley say, “The noose is looser, but the leash is longer.” I know that today I enjoy more flexibility in where I work than my father or grandfather ever imagined. But I also have the ability to (and do) work all the time from wherever I am. Being able to access my accounting processes from my mobile phone empowers me to chase down that partner or watch the kids perform in a school performance without missing a beat. Combine this flexibility with the power of collaboration for which the web is known, and you have a must-have feature for accounting software.

The last 20 years of accounting software has focused on reporting and easy access to the data. I think the next few years will focus on creating the “end-to-end” transaction view while helping you and your businesses with the processes surrounding the data. In the end, this is where the data lives. In the end, you’ll be surprised that with the right tools your creation will take form and you can claim, “It’s alive!”

Rene

(Originally printed in the April/May 2010 Issue of CPA Technology Advisor)

Bill.com Now Integrated with Google Apps; Available on Google Apps Marketplace

We are excited to announce that Bill.com is now available on the Google Apps Marketplace and that we have enabled single sign-on between Google Apps and Bill.com using your Google Apps credentials!

With this integration users can now access Bill.com directly from their Google Apps menu and do not need to sign on if they have an active Google Apps session.

Enabling Google Apps Integration for Existing Bill.com Users

1. Make sure you know your Google Apps and Bill.com login credentials. Important: You must be a Google Apps Administrator to enable the integration from the Google Apps marketplace. If your Google Apps Administrator is not a user of Bill.com currently, a Bill.com Administrator MUST add the Google Apps Administrator as a user of Bill.com to complete the setup. Once the setup is complete, the Google Apps Administrator can be removed from Bill.com. 
2. From the Google Apps Administrator account, go to the Google Apps Marketplace and look for the Bill.com listing under the “Accounting & Finance” category and click on the link. You can go directly to the listing by clicking here!
3. Click on the “Add it Now” button and enter the name of your domain.
4. Click on link: “Already have a Bill.com account? Click here to connect it to Google Apps.“.
5. Enter your Bill.com login credentials
6. Go back to your Google Apps Dashboard and next to Bill.com click on Enable Service. Then click on Enable Bill.com.
7. The integration for your Google Apps domain is now enabled! Now, all your Google Apps users will start seeing "Bill.com" under the “more” menu in Google Apps Universal Navigation.
8. All users of Bill.com need to now enable integration for their own userid's. Instruct your users to go to https://app.bill.com/Login to log into their Bill.com account using their existing Bill.com credentials and go to the page Setup > My Profile and click on the "New" button to add Google credentials (see below).
9. Every Bill.com user that enters their credentials can now click on "Bill.com" from the Google Apps "more" menu and will be able to access Bill.com without having to signon if they have a valid Google Apps Session!

With Bill.com and Google Apps integration we are making it even easier to access all your important financial documents and manage your financial operations online. We hope you enjoy this new feature!

New Features Make Bill Approvals and Payment Even Easier!

Approving Bills Just Got Even Easier and More Efficient!

Approvers can approve multiple bills from their bill approval list!  To approve several bills at once simply check the box to select the bills you want to approve and click "approve". 

If you need to add notes to the bill when approving, click on "Slideshow Approval" and you will see individual bills (including images) and can enter notes and approve or deny each bill. 

 

It is Now Even Easier and Faster to Void Payments

You can now void recent payments from the bill detail screen without having to contact our Operations team.   As long as the payment has not cleared (by check or electronically), payments will be credited to your account automatically or a new check will be issued.

It is Now Easier to Discover and Resolve Checks That Have Not Cleared

It is inevitable that some check payments may not get to a vendor either because of an unknown change in address or problem with the mail. The best solution is to start paying your vendors with ePayments! But, in situations where check payments are still required we have made it easier to review and resolve checks that have been outstanding for too long.

The Bill.com To Do list will show authorized users how many checks are outstanding.

Simply click on the link to review uncashed checks.  Checks that have been outstanding for more than 20 days will be highlighted in red.  You can choose to void and credit the payment to your account or void and reissue the check to the vendor.

Now Receive Automatic Notification of Returned Checks

When a check is returned to Bill.com by the US Mail you will be notified via email and you’ll see a task in your To-Do list to advise you that action is required to continue processing the payment. 

Clicking on this link will allow you to review the returned check information and take action. You can update the vendor information and reissue the check or void and credit the payment to your account.

Increased Controls for Accountant Console Users

A new Staff role for the accounting firm staff which allows the firm to limit what an accounting firm user sees within the Accountant Console.   Staff users get free access to client accounts but cannot view or change client billing options, alter your logo, or add new client accounts.

Note that this role restricts what an accountant user can do in the Accountant Console and does not determine a user's role within a client organization (Administrator, Payer, Clerk, etc.). Accountant users can be restricted as "Staff" users in the console but be Administrators (or other roles) in individual client accounts.

  

 Let us know what you think of these new features!!!!

1 day to Earth Day! Green tip #10: Replace your file cabinet with a tree

Use digital storage solutions to cut paper and reduce clutter. According to Office Depot, one 100 Megabyte zip drive can store the contents of a four-drawer filing cabinet, and one CD-Rom can hold nearly a roomful of paper! Many businesses still use hundreds of file boxes for all their information, creating more paper waste, and information is hard to file, organize, and retrieve.

Once you scan and convert your files into digital format, the paper documents can be shredded and recycled. Not only have you reduced your impact on the environment, you and your colleagues have instant access to your archived files. Information at your fingertips! Digital documents can save hundreds of trees per year for your company. And wouldn't that tree look pretty in the corner of your office instead of your filing cabinet?

2 days to Earth Day! Green tip #9: Encourage the green commute at your workplace

The daily commute is increasingly having an impact on the environment. Encourage your employees to walk, cycle, take transit, and carpool.

You can create a green commute friendly environment by encouraging and rewarding employees who use alternate forms of transportation:

• Subsidize employee transit
• Create a carpool matching program
• Designate secure bicycle parking
• Have flexible work schedules
• Provide access to showers and lockers
• Designate carpool parking spaces
• Award prizes or gift cards  to employees

3 days to Earth Day! Green tip #8: Lose the bottled water

Bottled water is more expensive than tap water and has a greater environmental impact. Consider getting a water filter, and you can save more than a thousand dollars a year. In blind taste tests, many people can't tell the difference. Plus, studies show that bottled water is not any healthier then tap water.

Fossil fuels are needed to make the containers that most bottled water comes in. It takes more than 30 million barrels of oil a year to make the plastic for the world's bottled water - enough to keep almost two million cars running for the same period of time.

4 days to Earth Day! Green tip #7: Have your meetings virtually

Virtual conferencing saves you money and also helps your business be greener. One 2500 mile flight per person emits 760 pounds of C02, which is equivalent to 5% of a U.S. home's electricity for one year.

5 days to Earth Day! Green tip #6: Designate a recycle area in your office

Recycling has a huge impact on the environment. It saves raw materials, utilities, and greenhouse gases.

Have your business designate an area for recycling. Using bins for recycling is cheaper than garbage removal. And it's fast and easy.