From: Document
By: Kelley West

The success of new solution implementations (or outsourced services) starts with the request for proposal (RFP), as it sets the tone for the entire solution-selection initiative. This one proposal affects the quality of the RFP responses, the amount of work required to identify the best solution, and even the effectiveness of the solution. Thus, it pays to get it right from the beginning.

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DataServ, the leading on-demand service provider of document management, workflow and outsourcing solutions, announces that it has successfully completed its SAS 70 (Statement on Auditing Standards No. 70) Type II Report for 2007. Developed by the American Institute of Certified Public Accountants, SAS 70 is the standard used to measure the reliability of a service organization's internal controls. DataServ has received an "unqualified opinion" from its independent auditor Brown Smith Wallace.

"We are very satisfied with the results from our SAS 70 auditing process," said Jeff Haller, CEO of DataServ. "Brown Smith Wallace performed a very thorough and rigorous review of DataServ's processes and controls and it was incredibly gratifying to come through with such great results."

A SAS 70 Type II engagement allows a service organization to have its control policies and procedures evaluated and tested. The results of the test for controls around DataServ's client support processes, documents and document process automation services ensure that the proper procedures and controls are in place to support their customers who must abide by Federal regulations such as Sarbanes-Oxley and Health Insurance Portability and Accountability Act (HIPAA).

A Service Auditor's Report with an unqualified opinion, such as the one DataServ received, issued by an Independent Accounting Firm differentiates the service organization from its peers by demonstrating the establishment of effectively designed control objectives and control activities.

"This completed SAS 70 Report will help our company build trust with our current and prospective clients," says Haller. "The result of the SAS 70 audit illustrates the reason why our clients outsource their document and process automation services to DataServ."

From: Industry Week
By: Jill Jusko

Manufacturers are showing growing support for lean accounting, which proponents say more accurately reflects activities of a lean organization.

There has been a "quiet revolution" unfolding the past few years among lean manufacturers, centered on the idea that traditional accounting measures don't accurately reflect the true results that lean delivers -- to the point that they sometimes promote the very opposite of lean. In fact, according to Brian Maskell, president of consulting firm BMA Inc., "Traditional accounting systems are actively harmful to lean organizations," necessitating an overhaul of the entire process in favor of lean accounting. Current signs indicate that the lean accounting movement is finding traction within the lean community.

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DataServ is proud to be a sponsor of the 3rd Annual Lean Accounting Summit, September 27-28, 2007 at Disney's Yacht & Beach Club in Orlando, FL.

In order to offer one-on-one attention to focus on your questions and to learn more about your company's needs, we will have a booth at the show. We encourage you to come by and see us!

As a featured sponsor, DataServ would like to extend to you a special $100 discount off the conference registration fee. Please quote the following VIP code when you register: dataserv

If you would like more information on the conference, or to register, please visit: Lean Accounting Summit

Generally, AP should never make a payment off of a vendor statement. Statements often contain invoices that have already been paid. Because of the lag time, the vendor may not have received payment, so these invoices show up on the statement. If you pay from the statement, you'll double-pay these invoices.

But that doesn't mean vendor statements aren't useful. You should look at them regularly--and even request them periodically. Why? One reason is to avoid a phenomenon called the "credit memo purge," according to Nat Goodman, APM, MBA, CPA, and one of our senior AP consultants.

At our recent one-day seminar on AP Best Practices in Boston, Goodman pointed out that some AR departments purge credit memos off of their systems after a certain period of time. When that happens, they disappear from the statement--and your company may never realize it missed taking the credits.

"Of course, vendors are not supposed to do this, because of escheatment," he says "But they rationalize it by saying that if the buyer does not take the credit within a certain amount of time, it must not be a valid credit, so it's purged."

So check the vendor statements regularly, and when you see a credit memo---apply it immediately. "Take it first and research it after the fact," Goodman advises.

Not every AP department has the resources or expertise to do all of the functions it needs to---so that's where outsourcing comes in. Outsourcing is defined simply as work done by a third party. These third parties can call themselves service providers, solution providers, or consultants. In essence, the outsourcing decision is analogous to a make-versus-buy decision.

AP functions or tasks frequently outsourced include freight/telecom audit and bill-paying, check printing, 1099 preparation, T&E processing, VAT reclamation, and post-audits.

In addition to the typical questions concerning price, procedures, etc., here are 10 questions that may not all come to mind at first blush, but they need to be addressed:

1. Is the outsource service provider financially sound and are they in this business for the long run?

2. Who are their clients and how do the clients feel about the relationship?

3. How well can they adjust to an increase in the volume/level of services?

4. Can we rely upon the outsourcer to keep us current?

5. Will they take us to the cutting edge in terms of processes and technology?

6. Are their costs reasonable/cheaper than in-house?

7. If cost is the driving factor, will they remain cheaper or are just trying to attract our business and then increase prices?

8. Can the outsource provider's process satisfy our control standards?

9. Can we manage results via reliable metrics?

10. Over time will the outsourcer share their efficiency gains with us?