The vendor life cycle is one of the most important aspects of any business. It affects how vendors are managed and tracked throughout the entire process, from onboarding to payment. This blog will discuss the various stages of a vendor life cycle, what each stage entails, and how to manage them effectively.
Running a business can be challenging; the constant feeling of needing to be on top of everything can leave you feeling overwhelmed and struggling to keep up. While, for most of us, that’s just the way it is; there are a few aspects of the business we can control and streamline to make our lives easier. One such aspect is the vendor life cycle.
This blog will take a romp through the various stages of the vendor life cycle and what each stage entails. We’ll discuss how to effectively manage them, including tips for streamlining processes and ensuring you keep all your vendors happy – without losing sleep.
So hang on tight – it’s going to be a wild ride!
Understanding The Vendor Life Cycle
As the name suggests, the vendor life cycle manages vendors from beginning to end. It involves identifying, sourcing, negotiating with, and managing vendors who provide goods or services to your business. The gist is ensuring that your vendors provide the best products, services, and prices for your customers.
Managing The Vendor Cycle: That’s How You Do It
We know that managing the vendor cycle isn’t easy. It can take a lot of time and resources to properly handle contracts, compliance, and payments. But it doesn’t have to be hard. Here are some tips for streamlining your vendor life cycle:
Gather All Necessary Onboarding Documents
First thing first, you need to ensure that you have all the necessary documents and information in order before onboarding a new vendor. Request W-9 forms; they can also be done digitally. All you need to do is to get the signed W-9 from your vendor, and you are ready to go.
Make Sure To Do Vendor Verification
Once you have collected W-9s and other relevant documents, it is important to verify the identity of your vendor. This includes validating legal names, TIN numbers, social security numbers, and a combination of other information provided by the vendors to match it with the IRS Database. Because, let’s face it, onboarding the wrong vendor can have serious consequences.
Test accounting tools and invoice payments
Proper invoicing and payment systems are key to any successful vendor relationship. This includes ensuring that invoices and purchase orders are accurate and processed in a timely fashion. It is important to ensure that the right taxes are being applied, discounts are included, and other details are taken into account to avoid future discrepancies or miscommunication. Once you are satisfied with the vendor verification process, it’s time to test out any accounting tools and payment systems that will be used for payments.
One of the most important aspects of vendor management is reporting 1099s to the IRS. This form reports all payments made to independent contractors and non-employees exceeding a certain threshold in any given year. As such, it is important to maintain accurate records of all payments made to vendors and ensure they are reported accurately. The penalties for failure to do so can be severe, so staying on top of this is essential.
Introducing Baker Tilly Digital and Tax1099 integrated Sage Intacct platform for better vendor lifecycle management
Tax1099 and Sage Intacct have become invaluable for organizations of any size. The vendor lifecycle process is simplified with the Baker Tilly Digital integration with the added power of Tax1099 and Sage Intacct to validate vendors, including compliance with tax requirements. A simple email can automate W-9 collection and onboarding with Tax1099’s TIN verification checks and informational tax compliance software. This helps streamline processes for accounting departments while ensuring that their vendor information is compliant. As a plus, the integration helps with improved accuracy during filing seasons.
Maintain accurate data with Baker Tilly Digital
Keeping data up-to-date no longer has to be complicated or overwhelming. With the assistance of Baker Tilly Digital, organizations can streamline their vendor 1099 review and tidying efforts, ultimately saving them time.
Report accurate information through Sage Intact
At the end of the year, organizations can benefit from streamlining their vendor 1099 review and tidying efforts using Sage Intaact to manage it. The integration allows easy importing of tax information directly to Tax1099 from the software, thus aiding in accurate reporting and saving time.
Make the 1099 filing process seamless by Tax1099
Tax1099 offers a streamlined process for filing 1099s, allowing you to send them via email or USPS mail. Records are kept securely for up to four years and can be accessed for IRS audits. Furthermore, filing for the current season and two prior is possible using Tax1099. With the easy-to-use platform, you can quickly and easily get your 1099 forms issued. Tax1099 also keeps records of the 1099s for four years in case you need to access it for an IRS audit.
There’s no doubt maintaining and managing the vendor lifecycle can be a complex and time-consuming process. But with Tax1099, harnessing the power of Baker Tilly Digital together can help make it easier. With so much to offer, you can rest assured that your vendor lifecycle management is safe. Get started now and start managing the vendor lifecycle easier than ever before. You won’t regret it!
Watch the recorded webinar: Simplify and automate your annual 1099s
Speakers: Tom Jurasek, Baker Tilly Digital, and Ed Pratt, Tax1099