|
|
|
|
The Highs and Lows of P-cards
|
|---|
Purchasing cards are common payment tools businesses can use to streamline their payables processes. Using a p-card allows AP to consolidate expenses and reduce paper invoice volumes.
Despite the benefits, p-cards also come with their share of challenges. This issue addresses some of those challenges and helps businesses strengthen their p-card programs. And for all the hard-chargers out there, we've also included a guide on how to drink caffeine. |
| Patrick Harbin – Editor
|
|
|
|
The P-card Reporting Challenge |
Filing 1099 forms each year can be a difficult and time-consuming job. Determining which payments are reportable, whether a payee is a legitimate independent contractor, and keeping up with deadlines is enough to drive any AP department crazy. And then you factor in purchasing cards...
The following are three issues that hinder 1099 reporting for p-cards:
- Buyers can't withhold tax when making a p-card purchase.
- Although the bank actually pays the vendor, the buyer – not the bank – is the payer.
- Buyers are responsible for reporting all reportable payments, regardless of the payment method.
To address these issues, the IRS developed the Qualified Purchase Card Agent (QPCA) program. QPCAs are card providers authorized to gather TIN information from vendors and determine if payments are 1099 reportable. Unfortunately no QPCAs are operational yet, so you're still on your own.
The Accounts Payable Network's upcoming audioconference,
P-Cards and Form 1099: Strategies to Ensure Accurate Reporting, featuring Denise Johnson of Balance Consulting, will help businesses tackle the p-card reporting problem and address why the QPCA program hasn't taken off.
|
|
| Why P-card Controls are Important |
A p-card program must have strong controls in place to prevent fraud and misuse. While many AP professionals would consider that statement common knowledge, there are many departments that have unprotected p-card programs.
In his latest blog post, Patrick describes the story of a university employee who was able to use her boss' p-card to buy $19,000 worth of gift cards. A few basic controls could have prevented the incident. Go to Patrick's Blog.
|
|
|
Just for Fun! |
It is probably fair to say that a large amount of payables professionals are caffeine drinkers. Whether it's a glass of coffee first thing in the morning, a soda with your lunch, or some afternoon tea, many people are bitten by the caffeine bug.
It turns out there is a strategy to drinking caffeine. A writer for science blog Developing Intelligence has posted five rules to help caffeine junkies get the best out of their addiction.
|
|
