Articles and updates on accounts payable automation, invoice processing and finance operations.
CapEx is capitalized and depreciated. OpEx hits the P&L now. Here is how to tell which an invoice is and the IRS de minimis safe harbor.
Read articlePetty cash is a small cash fund for minor business expenses. Here is how the imprest system works, the journal entries, the controls, and when to close it.
Read articleAn expense accrual records a cost you incurred but have not been invoiced for. See the journal entries and how AP finds the invoices that have not arrived.
Read articleCheck fraud is the most common payment fraud hitting US businesses. Here is how check washing and altered checks work, and the controls that actually stop them.
Read articleW-8BEN is for foreign individuals, W-8BEN-E is for foreign entities. Collect the right one before you pay, or you must withhold 30% and file Form 1042-S.
Read articleVirtual card payments use a single-use card number locked to one vendor and one amount. See how the rebate works, which suppliers accept them, and where.
Read articlePrepaid expenses are costs you paid before receiving the benefit. See the journal entries, the amortization schedule, and how AP catches them before posting.
Read articleA stale check is one presented more than six months after it was written. See how many months banks honor them and how AP should handle uncashed vendor checks.
Read articleBackup withholding means holding back 24% of a vendor payment and sending it to the IRS. See what triggers it, when it starts, and how AP teams avoid it.
Read articleACH is one type of EFT, not a competing method. See how ACH, wires, cards, and RTP compare on cost, speed, and reversibility, and which fits vendor payments.
Read article