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Hub You - Accounting With the Lights Out
The North Carolina State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:Department of Revenue P.O. Box 25000 Raleigh, NC 27640-0640 (919) 733-3991http://www.dor.state.nc.us/North Carolina requires that you use North Carolina form "NC-4, Employee's Withholding Allowance Certificate" instead of a Federal W-4 Form for North Carolina State Income Tax Withholding.Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In North Carolina cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.In North Carolina supplemental wages are taxed at a 6% flat rate.You must file your
On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with invoice images stored in an IBM Content Manager repository.
Going live
When the green light was given to proceed with the automation project, additional pressures reared their head. One of DrinkCo’s offices was to be closed and the work transferred to its Midlands HQ. This also meant redundancies amongst AP staff – which applied additional pressure to get the automated invoice processing system live as quickly as possible. As staff was leaving, a backlog of invoices was buildin
Corrugated plastic, also known as plastic corrugated, is growing in popularity in the returnable packaging industry. This versatile material has uses beyond duplicating traditional paper packaging. One of the newest uses of plastic corrugated is as a replacement for wood crates. Wood crating has been used for years in the packaging industry. What made it so attractive was not only its strength and durability but the ease of constructing one as needed. However, many companies made the mistake of depending solely on wood instead of exploring other packaging products such as corrugated plastic when their business expanded or they received a larger than normal order. This resulted in delayed shipments and/or damaged products as they had to rush to make their own packaging using the same wood material that had served them so well in the past.One of the main reasons companies used wood for their return
Even the most rigorously organised AP system has plenty of opportunities for problems, including lost or misplaced invoices; incorrect manual data entry; time lost sorting and filing paper, or trying to locate matching purchase orders. All of which leads to slow processing, which can impact directly on the organisation’s financial reputation with partners and suppliers. What’s more, manual AP systems make it almost impossible to meet the regulatory and compliance demands of Sarbanes Oxley, IFRS and others for complete document traceability and auditability.
All in all, it’s a recipe for a fruitless paper chase. Throwing manpower at the problem isn’t a viable solution. More people means more invoices processed – but employment and labour costs are significant for such skilled staff, which limits expansion in the AP function. On average, a full time AP employee can process around 8500 invoices per year using manual processes. Yet world-class companies can process upward of 80,000 invoices per person per year – a quantum leap in efficiency.
Flicking the switch
So how is a ten-fold boost in productivity possible? It’s simply a question of automating as many aspects of the AP function as possible. The real costs involved in AP are the man-hours involved in manual tasks, including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.
Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.
The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping to turn AP into a profit centre, not a cost centre.
Let’s take a close look at exactly how this can be achieved. We will use a real-life example of the AP department of a large business in the licensed trade, which undertook a phased migration from paper-based manual processing to fully automated invoice processing.
Raising a glass to automation
DrinkCo is a UK-based business that owns several well-known pub chains. As one of the largest pub operators in the UK, the company processes 600,000 invoices per year. As a Peoplesoft (now Oracle) Accounts user, DrinkCo wanted to deploy an invoice capture solution to bring key financial data directly into the Peoplesoft solution and accelerate processing.
With ROI being a key factor in the decision to deploy, DrinkCo undertook a proof-of-concept exercise with Digital Vision that demonstrated that ROI was possible within months, rather than years.
The proof-of-concept was based around an invoice capture solution from Paradatec, integrated with data extracts from the Peoplesoft system so that invoices can be matched with purchase orders and goods received notes. This demonstrated that high levels of accuracy were possible with data capture on the majority of invoices received.
Before optimisation of the capture process, data capture on general invoices was 73%. By focusing on invoices from large-volume suppliers, this was raised close to 100%. Furthermore, the process proved that the artificial intelligence system performed regardless of invoice layout, and that that the invoice capture engine’s AI rules could be adapted to handle different invoice layouts, or those from new suppliers.
On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with invoice images stored in an IBM Content Manager repository.
Going live
When the green light was given to proceed with the automation project, additional pressures reared their head. One of DrinkCo’s offices was to be closed and the work transferred to its Midlands HQ. This also meant redundancies amongst AP staff – which applied additional pressure to get the automated invoice processing system live as quickly as possible. As staff was leaving, a backlog of invoices was building
An introduction to Injection Molding.Every plastic product you see needs to be shaped, and the most common method is Injection Molding. Most people using their computer to read this give no thought to how all those plastic parts were formed. Or how complex and expensive it is even to produce a ballpoint pen. Just about every part made of plastic these days is formed using some kind of an injection mold, from tiny precision parts that can barely be seen to large automotive exterior parts. Just about every industry relies on some kind of injection mold for their products.Injection molding is the forcing of molten plastic into a shaping cavity. An injection molding machine has three basic components:1) Injection. Plastic pellets are fed into a hopper and then heated up. Once they are melted they are injected under extremely high pressure into a mold.2) Mold. This is a custom designe
Flicking the switch
So how is a ten-fold boost in productivity possible? It’s simply a question of automating as many aspects of the AP function as possible. The real costs involved in AP are the man-hours involved in manual tasks, including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.
Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.
The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping to turn AP into a profit centre, not a cost centre.
Let’s take a close look at exactly how this can be achieved. We will use a real-life example of the AP department of a large business in the licensed trade, which undertook a phased migration from paper-based manual processing to fully automated invoice processing.
Raising a glass to automation
DrinkCo is a UK-based business that owns several well-known pub chains. As one of the largest pub operators in the UK, the company processes 600,000 invoices per year. As a Peoplesoft (now Oracle) Accounts user, DrinkCo wanted to deploy an invoice capture solution to bring key financial data directly into the Peoplesoft solution and accelerate processing.
With ROI being a key factor in the decision to deploy, DrinkCo undertook a proof-of-concept exercise with Digital Vision that demonstrated that ROI was possible within months, rather than years.
The proof-of-concept was based around an invoice capture solution from Paradatec, integrated with data extracts from the Peoplesoft system so that invoices can be matched with purchase orders and goods received notes. This demonstrated that high levels of accuracy were possible with data capture on the majority of invoices received.
Before optimisation of the capture process, data capture on general invoices was 73%. By focusing on invoices from large-volume suppliers, this was raised close to 100%. Furthermore, the process proved that the artificial intelligence system performed regardless of invoice layout, and that that the invoice capture engine’s AI rules could be adapted to handle different invoice layouts, or those from new suppliers.
On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with invoice images stored in an IBM Content Manager repository.
Going live
When the green light was given to proceed with the automation project, additional pressures reared their head. One of DrinkCo’s offices was to be closed and the work transferred to its Midlands HQ. This also meant redundancies amongst AP staff – which applied additional pressure to get the automated invoice processing system live as quickly as possible. As staff was leaving, a backlog of invoices was buildin
Stupidity: Doing the same thing over and over again and expecting different resultsNo one should be billing themselves as stupid. After all you are operating in a very high-paced world, handling multiple demands on your time, and still producing good work. Yet if you are operating in this mode and are feeling stressed and unproductive because your ToDo list and daily stacks keep growing, then you may be exemplifying that definition.Are you using the same techniques that you used last year and four years ago to manage your phone calls, your email, and your long-term projects? If you are, chances are that is the reason you are having to cope with stress each day. An increased pace at work along with new technology demands that you have a method for integrating changes.In my consulting work, as I assess office productivity, I might find that one person is using fo
The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping to turn AP into a profit centre, not a cost centre.
Let’s take a close look at exactly how this can be achieved. We will use a real-life example of the AP department of a large business in the licensed trade, which undertook a phased migration from paper-based manual processing to fully automated invoice processing.
Raising a glass to automation
DrinkCo is a UK-based business that owns several well-known pub chains. As one of the largest pub operators in the UK, the company processes 600,000 invoices per year. As a Peoplesoft (now Oracle) Accounts user, DrinkCo wanted to deploy an invoice capture solution to bring key financial data directly into the Peoplesoft solution and accelerate processing.
With ROI being a key factor in the decision to deploy, DrinkCo undertook a proof-of-concept exercise with Digital Vision that demonstrated that ROI was possible within months, rather than years.
The proof-of-concept was based around an invoice capture solution from Paradatec, integrated with data extracts from the Peoplesoft system so that invoices can be matched with purchase orders and goods received notes. This demonstrated that high levels of accuracy were possible with data capture on the majority of invoices received.
Before optimisation of the capture process, data capture on general invoices was 73%. By focusing on invoices from large-volume suppliers, this was raised close to 100%. Furthermore, the process proved that the artificial intelligence system performed regardless of invoice layout, and that that the invoice capture engine’s AI rules could be adapted to handle different invoice layouts, or those from new suppliers.
On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with invoice images stored in an IBM Content Manager repository.
Going live
When the green light was given to proceed with the automation project, additional pressures reared their head. One of DrinkCo’s offices was to be closed and the work transferred to its Midlands HQ. This also meant redundancies amongst AP staff – which applied additional pressure to get the automated invoice processing system live as quickly as possible. As staff was leaving, a backlog of invoices was buildin
Laser machining technology uses high intensity laser beams of varying widths for a variety of applications such as slotting, cutting, and creating holes. It can be used in fabrication of different types of materials such as metals, plastics, vinyl, glass, marble, and graphite. Other materials that can be fabricated using laser machining include nylon, ceramics, carbon fiber, composites, soft rubber, and thin metal foils.Laser machining systems are used in conjunction with computer numeric control (CNC), which makes it ideal for use with thin walled tubing, boasting beam widths down to .0005'. In this process, the machining operator uses computers to control machine tools for manufacturing complex and intricate parts in metal and other materials.A laser machining process involves the use of conventional as well as fiber optic beam delivery systems, which allow precision positioning while cuttin
With ROI being a key factor in the decision to deploy, DrinkCo undertook a proof-of-concept exercise with Digital Vision that demonstrated that ROI was possible within months, rather than years.
The proof-of-concept was based around an invoice capture solution from Paradatec, integrated with data extracts from the Peoplesoft system so that invoices can be matched with purchase orders and goods received notes. This demonstrated that high levels of accuracy were possible with data capture on the majority of invoices received.
Before optimisation of the capture process, data capture on general invoices was 73%. By focusing on invoices from large-volume suppliers, this was raised close to 100%. Furthermore, the process proved that the artificial intelligence system performed regardless of invoice layout, and that that the invoice capture engine’s AI rules could be adapted to handle different invoice layouts, or those from new suppliers.
On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with invoice images stored in an IBM Content Manager repository.
Going live
When the green light was given to proceed with the automation project, additional pressures reared their head. One of DrinkCo’s offices was to be closed and the work transferred to its Midlands HQ. This also meant redundancies amongst AP staff – which applied additional pressure to get the automated invoice processing system live as quickly as possible. As staff was leaving, a backlog of invoices was buildin
Thinking about changing payroll services? Smaller payroll companies often charge substantially less than their larger, nationally recognized counterparts. The main reason for this discrepency is that the smaller companies do not have the overhead of the larger companies, so they can pass the savings along to clients.If decide you want to change from a big-name provider to a smaller payroll firm, or if you are starting a business and need payroll services, remember that smaller payroll providers often offer the same services as the larger companies:One time set-up fee, payroll service handles set-up Payroll customer or payroll service enters hours worked and prints paystubs each pay period Payroll service handles all tax payments and tax returns Payroll service offers electronic services for all transactions--direct deposit, tax forms, tax payments, W-2s Payro
On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with invoice images stored in an IBM Content Manager repository.
Going live
When the green light was given to proceed with the automation project, additional pressures reared their head. One of DrinkCo’s offices was to be closed and the work transferred to its Midlands HQ. This also meant redundancies amongst AP staff – which applied additional pressure to get the automated invoice processing system live as quickly as possible. As staff was leaving, a backlog of invoices was building up.
The solution was deployed in just 8 weeks. The backlog of 4500 invoices built up while staff were leaving was dealt with by just four staff, who validated and corrected the backlog in less than three days. Under its previous system, clearing a similar-sized backlog would have taken 12 staff over 10 days – clearly demonstrating the savings in time and manpower possible with the automated solution, and immediately delivering ROI. The AP team continues with four validation staff, and the project achieved full return on the original investment in just 8 months.
Planning for lights-out accounting
As well as showing the ROI possible from automation, the process followed by DrinkCo is an excellent example of how businesses can plan their move toward lights-out accounting. First, evaluate the invoice capture solution, and if possible, conduct a pilot to ensure that invoices can be captured ready for processing with near-100% accuracy and with high levels of automation. This builds the ‘funnel’ for automated processing and helps in defining subsequent workflow paths.
Second, integrate capture with core business systems to automate invoice matching with supporting documentation such as purchase orders, and to highlight any exceptions (e.g. invoices without orders) which need to be escalated into the workflow of an authorised member of staff. This workflow should be governed by customised, business-specific rules, to enable AP staff to manage invoice processing by exception rather than hands-on – freeing staff to perform more strategic tasks.
Third, use an invoice automation system which ensures that every transaction, amendment and movement of data is fully audit trailed, providing irrefutable evidence of any work-around and non-sanctioned processes. The log should be stored with the electronic version of the invoice to give complete visibility of the invoice’s path through the organisation. This evidence eases audit pressures that, in turn, can be converted to reduced audit costs.
Given the compelling evidence of ROI from AP automation, it’s not a case of if you’ll ever be able to turn the lights out, but whether you can afford not to.
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