Tag: accountability

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Business Data Storage in the Cloud – Accountex Report

The term “cloud” has been applied to all sorts of online or Internet-based application models, and there are a great many approaches to developing cloud-based services and solutions. What this translates to is a volume of options and possibilities for information storage, management, and access in the cloud.Understanding where information is stored, how it may be accessed, and how it might be transmitted to others becomes essential knowledge that business owners should have when they engage with any information technology (IT) solution or service. Yet the plethora of “simple, affordable, and instantly gratifying” services currently available on the web all but ensure that businesses will engage with one or more solutions that provide them with little or no information (much less control) over the placement and management of their data.

Source: Business Data Storage in the Cloud – Accountex Report

Read more about Compliance in the Cloud, and making sure your data doesn’t get lost or compromised, even when you use a hosting company…

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Cloud and Digital are Driving Change in Professional Practice

Accounting and Finance Professionals: Cloud and Digital are Driving Change in Professional Practice

Accountants and financial consultants working in public practice are experiencing a revolutionary change, evolving from documents and paper-based processes with after-the-fact reporting to real-time business management and providing services which support daily decision-making.  The underlying cause for this evolution in business accounting is the technology: cloud and collaborative computing models are enabling much closer and regular interaction between accounting professionals and the businesses they serve. Even more, technology is taking its proper place in automating once tedious activities, allowing professionals to focus on causes and results rather than on transactions.

What is the real impact this is having on the accounting profession?  It’s forcing a new focus and attention on change management within the practice, and is causing professionals to recognize the requirement for standardization of processes and development of controls which are the foundations for creating sustainability in a business.  The goal now is placing reliance on process rather than people, which establishes the basis for intelligent automation.  Standardization of processes does not require that the firm lose its personality.  Rather, the mission at hand is to imbue the organization with its unique flavor and approach and to use process automation to develop and support consistency in the functions performed.

While cloud computing models allow accounting and finance professionals to work closer with their business clients, it is important that the practice look at those client interactions and develop standards for processes supporting frequently performed functions.  These operations generally represent the activities within the firm which generate the highest levels of profitability due to the consistency in approach and repetition of tasks, and are the activities to apply intelligent automation to first.  Those activities or engagements which represent the “one-offs” are often the most costly for the firm to perform, and therefore may not be the most profitable of activities and are certainly the most challenging to support with any significant level of automation.  It is in this area where AI will find useful value in the practice, where a more informed answer than simple process automation is required.

The surprising finding when looking at many professional practices with more than one partner/professional involved is that these firms often fail to develop even the most basic of standard processes which apply throughout the firm.  Rather, each partner or professional has “their way” of handling things, which challenges the supporting personnel as they try to deal with multiple working methods. The result is a lack of consistency in the service delivery to the clientele and reduced productivity and profitability for the firm.

The thing that these firms are failing to recognize – the light bulb over their heads that just isn’t lighting up – is that cloud computing and collaborative working models aren’t designed just to enable and facilitate a closer working relationship with clients.  They’re also able to be applied inside the professional practice, enabling a more productive and efficient workflow which addresses the strengths and capabilities of the entire organization. And it doesn’t stop there.  Businesses are relying upon their accounting professionals to provide guidance and develop controls and standards to support the client transformation from paper-based to digital operations, and embracing the entire realm of data and interactions associating with the business. Digital transformation in a client business demands transformation in those firms who serve it.

As professionals learn to go deeper in client operations they would do well to look internally, too, exploring how increased attention to process automation and consideration for the firm’s own “digital transformation” might lead to great profitability through market differentiation and improved performance.

Make Sense?

J

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Taking Action to Expand Overtime Protections | whitehouse.gov

The Department of Labor is finalizing a rule to update overtime protections for workers. “In total, the new rule is expected to extend overtime protections to 4.2 million more Americans who are not currently eligible under federal law, and it is expected to boost wages for workers by $12 billion over the next 10 years.”

Source: Taking Action to Expand Overtime Protections | whitehouse.gov

This is a difficult subject for everyone involved – workers and business owners alike. Increases in minimum wage, increases in employee health care costs, and adjustments to wage and hour regulations all serve complicate and cost businesses more.  Fair payment for time worked, a living wage, and protections for workers from employer abuse are things that are expected – deservedly so – by employees.   Definitions vary, as do circumstances, so a one-size rule never really fits all and someone, somewhere, feels the burn.

A USA Today article on the subject describes Labor Secretary Thomas Perez as saying “the salary threshold was originally intended to exempt high-paid executives but instead has denied overtime to low-level retail supervisors and entry-level office workers who often toil 50 to 70 hours a week.”

On the other hand Dan Bosch, head of regulatory policy for the National Federation of Independent Business, was described as saying that “many small businesses can’t absorb the added cost and will instruct employees to work no more than 40 hours a week, bringing on part-time workers to pick up the slack”.  From Trey Kovacs, policy analyst with the Competitive Enterprise Institute: “The Obama rule puts a huge cost and regulatory burden on employers, who will face pressure to cut back on benefits and full-time employees”.

A bill was introduced on Thursday by Republican congressional leadership hoping to block the proposed overtime rule. The proposed legislation, Protecting Workplace Advancement and Opportunity Act, is intended to ensure that the Department of Labor takes a “balanced and responsible approach to updating federal overtime rules.” Sponsors of the legislation include members of the Senate Committee on Health, Education, Labor, and Pensions and the House Committee on Education and the Workforce.

Part of the bill’s consideration may be the burden of record keeping and information management that just keeps growing ever larger.  The current DOL changes, for example, now suggest that businesses must keep time and attendance records in detail for their salaried employees who might qualify for overtime compensation.  Getting employees to keep time cards or complete timesheets  may not be an easy thing to do, yet punching a timeclock and tracking their hours may become their new normal.  Some employers, on the other hand, will elect to simply raise workers’ base pay to the new threshold, avoiding paying the overtime and skirting the need to keep detailed time records.

logo-we-heart-employees

The extension of overtime protection to another 4.2 million Americans, and boosting wages by $12 billion over the next 10 years is the expectation for the new rule’s impact, although opponents suggest that employment (and employers) will suffer, reducing their workforces while absorbing costly HR management processes just in order to comply.

The rule is likely to touch nearly every sector of the U.S. economy, with the most notable adjustments occurring with nonprofits, retailers and hospitality (hotel and restaurants), as these are the industries generally having management-level workers whose salaries are at or below the new threshold.  Whether the outcomes of the rule will be as expected remains to be seen, but it is certain that many businesses must now put in place software, systems and processes which will help not just help them comply with new wage and hour rules, but deliver enough intelligence to support better personnel management, employee scheduling and labor cost containment.

jmbunnyfeetMake Sense?

J

 

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Franchise FUD: Browning-Ferris Industries, the NLRB, and Joint-Employer Status

Franchise FUD: Browning-Ferris Industries, the NLRB, and Joint-Employer Status

iconicAn August decision by the NLRB is likely to have a broad impact in the coming years, forcing a great deal of change in how many businesses do business.  While the issue may be under the radar for some business owners, those in the franchise industry are paying very close attention – which makes sense because the ruling could easily be construed as the beginning of the end for the franchise business model.  At stake are the definition of “employer” and the determination of who is really responsible for the workers.

The issue stems from a 3-2 decision by the NLRB on a case involving Browning-Ferris Industries of California.  Browning-Ferris Industries is a waste management company that contracted with another company – Leadpoint – to supply employees to perform a variety of work functions.  Under the NLRB ruling, it was determined that Browning-Ferris was a joint employer with Leadpoint.  What is interesting in this case (and where the FUD – fear, uncertainty and doubt – come in) is that “indirect control” of the employees became the primary factor determining whether a joint employer relationship existed under the National Labor Relations Act. Going against years of precedent, the board ruled that Browning-Ferris and Leadpoint were jointly employing the workers.

In the decision, the Board applies long-established principles to find that two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law;  and (2) they share or codetermine those matters governing the essential terms and conditions of employment. In evaluating whether an employer possesses sufficient control over employees to qualify as a joint employer, the Board will – among other factors — consider whether an employer has exercised control over terms and conditions of employment indirectly through an intermediary, or whether it has reserved the authority to do so.

https://www.nlrb.gov/news-outreach/news-story/board-issues-decision-browning-ferris-industries

There are many who believe Browning-Ferris is a precursor to the pending proceeding against McDonald’s Corp. in which the NLRB general counsel charges McDonald’s Corp as a joint employer of its franchisees’ employees.  Possibly in response to outcries of wage inequality and fast-food worker strikes to force an increase in the minimum wage, the NLRB seems to be adjusting its definitions in favor of the movement and may inadvertently destroy the foundations of the franchise business model according to some.

Clearly the franchise business model is in the crosshairs.  In an article published on Law360 by David J. Kaufmann, Breton H. Permesly and Dale A. Cohen, the authors cite from the June amicus brief on the Browning-Ferris proceeding, in which NLRB General Counsel Richard F. Griffin Jr “directly addressed and attacked franchising, claiming that it was merely an “outsourcing arrangement” and insisting that franchisors are the joint employers of their franchisees’ employees because franchisors can exert significant control over the day-to-day operations of their franchisees”. No ambiguity there.

There have always been questions when workers are classified as contractors, forcing regulatory agencies to delve into the details of the relationship to determine whether or not independence actually exists.  But this decision changes things in a big way.  From Unions gaining more strength in forcing contracting organizations to participate in bargaining processes, to franchise businesses electing to run only company-owned locations to minimize exposure and risk, there is likely to be some troubling times for businesses large and small in the coming months and years as the new definitions take hold.

jmbunnyfeetMake Sense?

J

here’s a shortlink to this article http://wp.me/p2hGOJ-Om

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To the EU and Beyond! Avalara acquires VAT Applications

To the EU and Beyond! Avalara acquires VAT Applications

Avalara, perhaps the best known and respected purveyor of sales tax compliance solutions in the US, has made another acquisition to expand their service line.  Just announced is Avalara’s acquisition of VAT Applications, provider of the iVAT suite of VAT compliance software and services. The iVAT solutions work for customers doing business in Europe and around the world, providing (among other things) cloud-based VAT compliance services for filing returns on all EU countries… in the required formats and languages.  By incorporating the iVAT solutions into the Avalara product line, the company extends its reach and capability to serve the global market.

To Infinity and Beyond! Buzz Lightyear from Pixar film Toy Story; image from wikipedia

To Infinity and Beyond!

While Avalara solutions are quite popular with US-based small businesses, the solutions are geared to work for businesses of virtually any size. iVAT solutions now take Avalara into EU and beyond, where VAT compliance is a necessity for enterprise as well as small biz (just as sales and use tax compliance is in the US).

Avalara has successfully acquired and incorporated several companies and solutions into its fold over the years, including EZtax, HotSpotTax, SuitePlus and Zytax.  This latest acquisition fills the cloud-based tax compliance solution line very well, and positions Avalara’s portfolio among the most comprehensive available anywhere.

Sales tax and VAT compliance is a big issue for business large or small.  Finding a solution that can not only address the business need, but that can serve businesses across borders and boundaries is essential in serving today’s global economy.  Even the smallest of businesses may find itself doing business internationally, selling to customers via the web often means crossing those lines and introducing new tax and compliance wrinkles and requirements.  Avalara addresses those business needs, and delivers solutions for the market whether it is local or global. It’s light years ahead of the rest.

jmbunnyfeetMake Sense?

J

 

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Courier or Messenger as Contractor or Employee? Compliance with Department of Labor

Courier or Messenger as Contractor or Employee? Compliance with Department of Labor

courierWhen it comes to dealing with the Department of Labor, there is only one prudent approach: keep meticulous records and self-audit regularly.  It’s not that the DOL is a particularly frightening group, but increasingly public conflicts suggesting wage theft and avoidance of employer responsibilities continue to shine a bright light on the gravely imperative nature of keeping the right records and operating within the proper constraints.  It is the DOL’s persistence in the auditing of independent contractor relationships which has put a tremendous amount of pressure on businesses which operate with primarily contracted workers.

The issue is not exclusive to any particular industry, but it seems that there are numerous rich targets in the area of logistics, as recent decisions impacting FedEx and UPS reflect.  Described in an MSNBC article quoting David Weil’s book “The Fissured Workplace”, the decisions supporting the DOL in the 9th Circuit “further undermine the “devolution of the proletariat” — corporate America’s ongoing effort to shed front-line, often low-wage employees through independent contracting, subcontracting, and franchising arrangements”.  The two federal appellate decisions disputed FedEx’s contention that its drivers in California and Oregon were properly classified as independent contractors.   While there are many situations where the argument supports fair treatment for workers who operate more as employees than contracted workers, there is an equally substantial base of business where the performers are contracted and independent and should remain free to operate as such.

One of the industries directly in the crosshairs of the Wage and Hour Division of DOL is the courier and messenger industry. Couriers and messengers pick up and deliver messages, documents, packages, and other items – generally between offices or departments within a business, or directly to other businesses or individuals – and do this while traveling by foot, bicycle, motorcycle, public transportation or private vehicle.  The Bureau of Labor statistics in 2012 indicated that almost 25% of those classified as couriers and messengers were local messengers and delivery providers, and that the highest concentration of these providers is in New York.

So what’s the deal with DOL versus courier/messenger services and their clients as it relates to the “contractor independence” issue?  Well, the initial approach by the DOL is often to consider the hiring authority (the client) as a Professional Employer Organization or simply as an employer.  This approach is often forwarded regardless of the provider’s owner/operator status, and may be due to a lack of supporting evidence that the courier was actively soliciting additional business from other sources (which is generally not the problem of the client, but in this case could be).  There is a requirement to substantiate not only the client’s position that he is not the employer, but to satisfy recordkeeping for the courier or messenger, as well, proving independence and having the necessary paperwork and proof to support the claim.

In a business where people are frequently on the move, scheduling jobs between pickups and deliveries, there isn’t a lot of time to spend filling out paperwork and getting written agreements.  These folks are working even as they’re scheduling more work, and a lot of this activity is done via text or telephone while riding a bicycle. The circumstances of how this industry works makes compliance a particularly difficult task, and the DOL doesn’t have to schedule audits and compliance visits – they can approach a business at any time and request to review records, observe activities, and more.

Given the frequency of such investigations and audits, every business in the industry should be looking for a simple and foolproof solution to keeping the right paperwork and records that will support the business operator claim of independence and protect them from unnecessary cost or litigation.  This is where an accounting professional or consultant may provide assistance, identifying the tools and developing the processes to ensure proper reporting and compliance with regulations on both sides of the transaction. Without the proper documentation and evidence supporting the position of the client as well as the provider (the courier/messenger), both parties may end up finding themselves in an unintentional and costly relationship.

jmbunnyfeetMake Sense?

J