News Release: Inovium launches on-demand purchase order payment system starting at $99

LAS VEGAS, Nevada. Mar 4 2008 – Inovium Corporation, a developer of on-demand business process automation software, today announced yet another industry-first solution with InoviumPOPS, a simple to use, procure-through-pay system to automate the purchasing process at a price starting at $99 per month for any number of users (www.InoviumPOPS.com).

Aimed squarely at the small and medium-sized business marketplace, InoviumPOPS (Purchase Order Payment System) presents a robust, recession fighting e-procurement solution coupled with near-instant electronic payment component at a small fraction of the cost of Enterprise systems. “A procurement process includes the identification of the product needed, the requisition and purchase order creation, approval process, delivery of purchase order to the supplier and subsequent delivery of the goods” states Jules Kaplan, founder of Inovium, “but what about the payment?” While most systems streamline the process up to the point of payment, often the payment itself is neglected, and the user is forced to resort to a more costly manual process. “With one click, payment can be scheduled through our secure, 256-bit encrypted network”, Kaplan reports.

The use of business process automation systems such as InoviumPOPS™ can result in savings to the user of as much as 80%, according to leading market research firms.

However, the prevailing spend management systems are unwieldy, require significant training and are expensive. The low price does not reflect in the feature list of this solution, with such industry standards as shopping cart capability for supplier product searches, client-designed approval processes, easy-to-use interface, integration into existing accounting systems, and reconciliation tools upon receipt of product or service ordered.

The initial version of InoviumPOPS interfaces with well known computer and hard goods suppliers. Because there is no cost for suppliers to link their electronic shopping carts to the InoviumPOPS system, Inovium expects the supplier list to grow rapidly. InoviumPOPS suppliers enjoy the added benefit of our rapid electronic payment system, reducing costly merchant processing fees.

About Inovium: Inovium is a developer of on-demand business process automation systems, including EIPP (Electronic Invoicing Presentment and Payment), RDC (Remote Deposit Capture), and e-procurement solutions, designed to streamline operations in a wide array of business sectors.

Contact Todd French

at (888) INOVIUM (466-8486) Ext. 1

toddfrench@inovium.com

Some pertinent changes to Federal Tax Laws 2007

Here are some of the pertinent changes to federal tax laws applicable to small businesses for the 2007 tax year:

Self-employment Social Security Tax - For 2007, the maximum net self-employment earnings subject to social security tax has increased to $97,500 (there remains no limit on income subject to Medicare tax).

Mileage Deduction - The standard mileage deduction for business vehicles has increased to 48.5 cents per mile from 44.5 cents per mile in 2006. Small business owners should also note that toll and parking expenses may also be deducted.

The AMT Lingers - Once again, Congress has sidestepped much-needed reform of the Alternative Minimum Tax (AMT), by adopting a simple "patch" that raises the size of deductions for individuals, married couples and children, thus allowing the AMT to endure for yet another year. Created to snare the high income earning taxpayers who used tax credits and deductions to avoid paying virtually any federal tax, the AMT was introduced in the early 1970's. Since Congress failed to index the AMT for inflation, the AMT now threatens to hit many middle class taxpayers-particularly those with incomes between $75,000 and $200,000-with additional taxes. Small business owners are particularly vulnerable because many operate their businesses as sole proprietorships or personal corporations. The AMT requires taxpayers to calculate their taxes twice, once under the normal rules and then a second time under complicated AMT rules, and then pay the higher tax. You can calculate the impact of the AMT (if any) on your 2007 taxes by using the AMT calculator at the IRS's website: http://apps.irs.gov/app/amt2007/index.jsp?ck

Employee Parking - Beginning in 2007, firms can spend up to $215 per month tax-free for employee parking. The limit on tax-free bus and subway passes increases to $110 per month, up $10 from 2006.

Expense Deduction Increased - The IRS has increased the maximum deduction for business property placed in service for the business in 2007 (Section 179) from $108,000 to $125,000, though this deduction is reduced if the cost of the property exceeds $500,000. For businesses located in a qualifying enterprise zone, the deduction is increased from $143,000 to $160,000.Husband and Wife owned Business - Married spouses who jointly own or operate a business may choose to be taxed as a joint venture if they qualify.

Domestic Production Activities Deduction - Businesses engaged in engineering, construction, film production, architecture, or the lease, sale, or rental of equipment manufactured in the U.S. can deduct up to six percent of qualifying net income from their federal taxes.

Electric Vehicle Credit - The tax credit previously offered to electric vehicles is not applicable to vehicles entering service after December 31, 2006.Equipment Purchase Credit - Opting to purchase business equipment, including computers and machinery, instead of leasing it can result in a tax deduction. For 2007, up to $112,000 of equipment purchased for your business can be deducted as an expense, rather than being depreciated over five or seven years (or any other period established by tax law), depending on the equipment claimed for the deduction. This represents a $4,000 increase from the deduction permitted in 2006. The deduction applies to both new and previously owned (used) equipment and is applicable regardless of whether the equipment was purchased with cash, or financed in any way. However, some states have income tax regulations that mandate the depreciation of equipment purchases, which would prevent business owners from taking advantage of this deduction. Check with your state's tax office to determine whether or not your business must depreciate new equipment purchases by law in your state.

For additional information regarding business tax changes for 2007, please visit the IRS's website:

http://www.irs.gov/formspubs/article/0id=10987900.html

New Sabarnes-Oxley Act Rules for Small Business

The Securities and Exchange Commission has delivered on its past promise by proposing a one-year extension of the Sarbanes-Oxley Act (SOX) Section 404(b) auditor attestation requirement for smaller companies. The SEC also announced that its staff has begun a cost-benefit analysis of the requirement.


Under the proposed extension, Section 404(b) requirements would apply to smaller public companies beginning with fiscal years ending on or after Dec. 15, 2009. The extension was not unexpected. In December, SEC Chairman Christopher Cox told the House Small Business Committee of his intent to propose the extension. [See the December 17, 2007 news item on AccountsPayable360.com]


Section 404 of SOX requires management to assess the company's internal controls reporting [Section 404(a)]---and it also requires an auditor's attestation [Section 404(b)]. Smaller companies already must comply with the Section 404(a) requirement for 2007 annual reports. AP departments have spent much time getting their AP policies and procedures in shape to pass muster with SOX.


Cox said the delay would allow the agency time to gather more data on the costs of SOX Section 404 internal control compliance for so-called "nonaccelerated filers," which are smaller public companies with a public float of less than $75 million.


According to the commission, the study will consist of two main parts: (1) a Web-based survey of companies subject to Section 404; and (2) "in-depth interviews including companies that are just now becoming compliant." The study, which is expected to be completed by late summer or early fall, will be spearheaded by the Office of Economic Analysis, aided by the Office of the Chief Accountant and the Division of Corporation Finance.


"The Commission believes that strong investor protection and healthy capital formation go hand-in-hand," Cox stated. "The study will give us the opportunity to ensure that the investor protections of Section 404 are implemented in the way that Congress intended, and do not impose unnecessary or disproportionate burdens on smaller companies."
According to SEC, this "dual approach" will allow it to gather information from a large cross-section of companies, and to "analyze more detailed information about what drives costs and where companies and investors derive the benefits."

New Sabbarnes-Oxley Act Rules for Small Business

The Securities and Exchange Commission has delivered on its past promise by proposing a one-year extension of the Sarbanes-Oxley Act (SOX) Section 404(b) auditor attestation requirement for smaller companies. The SEC also announced that its staff has begun a cost-benefit analysis of the requirement.

Under the proposed extension, Section 404(b) requirements would apply to smaller public companies beginning with fiscal years ending on or after Dec. 15, 2009. The extension was not unexpected. In December, SEC Chairman Christopher Cox told the House Small Business Committee of his intent to propose the extension. [See the December 17, 2007 news item on AccountsPayable360.com]

Section 404 of SOX requires management to assess the company's internal controls reporting [Section 404(a)]---and it also requires an auditor's attestation [Section 404(b)]. Smaller companies already must comply with the Section 404(a) requirement for 2007 annual reports. AP departments have spent much time getting their AP policies and procedures in shape to pass muster with SOX.

Cox said the delay would allow the agency time to gather more data on the costs of SOX Section 404 internal control compliance for so-called "nonaccelerated filers," which are smaller public companies with a public float of less than $75 million.

According to the commission, the study will consist of two main parts: (1) a Web-based survey of companies subject to Section 404; and (2) "in-depth interviews including companies that are just now becoming compliant." The study, which is expected to be completed by late summer or early fall, will be spearheaded by the Office of Economic Analysis, aided by the Office of the Chief Accountant and the Division of Corporation Finance.

"The Commission believes that strong investor protection and healthy capital formation go hand-in-hand," Cox stated. "The study will give us the opportunity to ensure that the investor protections of Section 404 are implemented in the way that Congress intended, and do not impose unnecessary or disproportionate burdens on smaller companies."
According to SEC, this "dual approach" will allow it to gather information from a large cross-section of companies, and to "analyze more detailed information about what drives costs and where companies and investors derive the benefits."

Marketing Plans 101 - Executive Overview

Marketing Develop multiple sources for lead generation and sales while developing a trusted brand for your business. Marketing is an area of your business that needs constant attention and new ideas.

The executive overview is the first section of a marketing plan. As with the executive summary of a business plan, the executive overview is typically written last. The purpose of the executive overview is to summarize the key points in the main body of the plan. This is useful when you are sharing your plan with employees, a business partner, investors, etc. The executive summary should be no more than 2-3 pages and briefly cover:

Market Overview
Competitive Overview
Product Overview

SWOT

(Strengths, Weaknesses, Opportunities and Threats)

Goals and Objectives
Strategies
Action Plan and Implementation Schedule
Evaluation Methods

This is part of a series about the various aspects of a Marketing Plan and why you should develop one for your business.

Source: Chris Yates, President, Business Marketing Services Inc.

Cutting Expenses to Increase Profits

As small business owners we are always looking for ways to increase profits. Many business owners look to increase sales and ignore cutting expenses. Cutting expenses however can generate a higher percentage return on profits than increasing income and may be a lot easier to find.
For an example, if you decrease expenses of office supplies by $100 per month you realize $100 in increased profits each month. To get the same return with an increase in sales by selling a $50 item with a profit margin of 20%, you need to increase revenue by $500.

Depending on the amount of revenue and expenses your company has, finding ways to decrease your expenses might be an easier process.

The first step to look at lowering costs is to review a report of your monthly expenses by category. Look at the last two years if they are available. You should look for any expense categories that increase with no justification such as increased sales. We found when we changed responsibilities of staff for who was in charge of office supplies one year that our office supply expense jumped 50% in one quarter. The only reason: a new person purchasing office supplies.

Source: David Gass, President & CEO, Business Credit Services Inc.

Firms to Switch Big Vendors to e-Payments

While checks are the dominant method of payment to major vendors, many organizations expect to convert most of these to electronic payments by the end of 2010, according to the 2007 AFP Electronic Payments Survey.
For payments to major suppliers, the survey found that the typical organization makes an estimated 65% of its payments by check, 18% by ACH credit, and 11% by wire transfer (see the accompanying chart). A few respondents use purchasing cards (4%) and ACH debits (2%).
The survey also reveals that 43% of respondents expect that their organization is very likely to convert the majority of payments to major suppliers from checks to electronic payments in the next three years.
In terms of vendors that are not considered major trading partners), 80% of organizations indicate that checks are the primary method (see chart).

E BIT & BYTES

Business-to-business firms that maintained or increased their advertising expenditures during the 1981-82 recession averaged significantly higher sales growth both during the recession and for the following three years" - McGraw-Hill

Outsourcing of Procure-to-Pay Processes Gain Traction as Companies Expand Their Focus beyond AP, Says Everest Research Institute

DALLAS--(BUSINESS WIRE)--A new study by the Everest Research Institute revealed a strong link between successful accounts payable (AP) outsourcing and the move towards Procure-to-Pay (P2P) outsourcing. Nearly 50 percent of respondents to a recent executive survey conducted by the Institute indicated interest in exploring how to expand their current AP outsourcing initiatives to include a broader Procure-to-Pay (P2P) scope within the next year to three years.
According to the Institute’s study, Outsourcing the Procure-to-Pay Process, buyers are increasingly considering P2P outsourcing to gain additional savings and address key pain points in their financial supply chains, such as high manual intervention costs. The Institute pinpoints P2P as a buyer’s stepping-stone toward full-service or Source-to-Pay (S2P) outsourcing, which is a more complex transition.
“In the world of Procurement Outsourcing (PO), P2P is a growth driver for the market as a whole, bringing new suppliers to the space and introducing global sourcing as a delivery mechanism,” said Katrina Menzigian, Vice President, Everest Research Institute. “P2P makes Procurement Outsourcing digestible, offering immediate benefits and opening the door to a new group of buyers that are interested in gaining transactional benefits up front and for whom PO now becomes a viable possibility.”
The supplier landscape in the PO market is highly concentrated with the top five suppliers (Accenture, Ariba, IBM, ICG Commerce and Xchanging) holding about 85 percent of market share, according to the study. Everest analysts say most suppliers who offer or plan to offer P2P services are making investments in building delivery capability through acquisitions, partnerships and internal investments.
“The demand for P2P capability is driving shifts in the supplier landscape,” said Saurabh Gupta, Research Director, Everest Research Institute and co-author of the report. “Currently, 40 percent of work is completed offshore, but we believe there is the potential for this number to reach 70 to 85 percent. In order to achieve this level, buyers need better education, detailed process definition, mentor and training programs of supplier resources and tool and process standardization. Suppliers recognize P2P capabilities will serve as a point of entry into the PO market. They are making significant investments, particularly in developing end-to-end technology solutions. Over the next few years, we see gradual movement towards a platform approach, and individual suppliers will create their own platform brands.”
The Institute study results were drawn from an executive-level survey, an analysis of multi-process Procurement Outsourcing contracts signed since 2007, and focused interviews with leading Finance and Accounting (FAO) suppliers.
To read more about the results of the Outsourcing the Procure-to-Pay (P2P) Process study, an extract of the report is available at www.everestresearchinstitute.com. To purchase the report or receive more information about other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110