Here's what's trending this week...
Industry accounting expert Mary Driscoll shares key metrics that indicate when a company is spending too much on manual operations. She cites the American Productivity & Quality Center's data on general accounting, stating that “top-performing organizations spend just one quarter of what the poorest-performing organizations spend on total process cost." Hints that it might be time to overhaul your AP process? Pay attention to the manual journal entry line item process. Your AP performance could improve if you're doing over 10 percent of these manually.
Former CFO of Enron Andrew Fastow warns his contemporaries that the path to accounting fraud may be soft underfoot. Elizabeth Blosfield (@EBlosfieldIJ) of Insurance Journal reports. As a convicted fraudster who served six years in federal prison for his role in the criminal enterprise, the irony was that many of his actions weren't explicitly illegal but deemed “loopholes." Warning other accountants of a similar path at a symposium for insurance underwriters, he used two props to demonstrate the ethical dilemmas many big companies face when getting fancy with the numbers: “A trophy he received for being named CFO Magazine's CFO of the year in 2000 and his prison identification card, which he received just two years later after Enron's downfall [...]"
Internet payment services are the talk of the town. Jeff John Roberts (@JeffJohnRoberts) of Fortune reports. Apple and Google have taken huge strides in the payments space, while there's another sleeping giant many in fintech expect to awaken—Amazon. Alex Rampell, general partner at venture capital firm Andreessen Horowitz seems to think so anyway: “Amazon is the most formidable," said Rampell. "If Amazon can get you lower-debt payments or give you a bank account, you'll buy more stuff on Amazon." This very well could be, considering that as of late, consumers are showing a dip in their confidence for traditional financial institutions.
Is the solution to the polarization of party politics fintech? Maybe not entirely—but it's a good place to start according to Bob Kerrey, contributor to American Banker. As the Office of the Comptroller of the Currency proceeds with a national charter giving fintechs a license to bank, signaling an opportunity to both sides of the aisle to contribute to the future of financial services. Here's how Kerrey proposes it should go: “Democrats and Republicans likewise should both focus their attention on the fact that the OCC will provide strong supervision and hands-on government oversight of the financial sector. They should emphasize policies that promote transparency, consumer protection and financial inclusion."
Want to know what all the blockchain fuss is all about? Bernard Marr (@bernardmarr) contributing to Forbes answers the big questions surrounding this headlining technology. Questions like: “What is it?" “Why is it important?" and “How will it change our lives?" Contributor Bernard Marr shares the details: “[Blockchain] has huge implications because, worldwide, the financial services market is the largest sector of industry by market capitalization. Replacing even a fraction of this with a blockchain system would result in a huge disruption of the financial services industry, but also a massive increase in efficiencies."
About the Author
Lauren is a Research Analyst at Nvoicepay. She has six years of experience in the technology and B2B payments industry.Follow on Twitter More Content by Lauren Ruef