Use Tallie’s Expense Reports & Internal Controls to Stay IRS Compliant Year-Round

A 2014 study by the Association of Certified Fraud Examiners estimates that organizations lose an average of 5% revenue to fraud each year. Without strong internal controls, a company is at risk for theft, misappropriation of funds, and a major audit. Here’s how to use Tallie’s automated expense reports to prevent fraud and stay IRS compliant year-round.

Create (and automatically enforce) thorough company policies.

You cannot prevent expense fraud without first establishing clear, specific company policies. For example, you may permit employees to expense WiFi fees at a conference, but only up to $20 a day. Of course, even the most thorough policy is useless unless it’s properly enforced. Miscommunication, a lack of awareness, and ineffective management can expose a company to fraud and a potential audit.

Historically, the reinforcement of these policies has been tedious and time-consuming. Accountants had to manually respond to violations, re-educate employees about the company policy, and then wait for a corrected expense report. Now, modern expense report software eliminates the need for these manual processes.

Companies that automate internal controls not only save time and cost, but also decrease the likelihood of fraud. Tallie’s policy engine lets you create custom expense policies based on category, dollar amount, project, class and more. Any expense that violates these policies is automatically detected, and the employee is notified immediately.

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If an employee doesn’t understand why their expense was in violation, they can simply click the “Out of Policy” alert to learn more. This not only prevents unnecessary errors, but helps ensure that employees remember the company policy while making future purchases.

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Keep expense reports IRS-compliant with timely and accurate records.

IRS Publication 463 requires that your records be not only accurate, but timely:

“You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence.”

(Publication 463, Cat. No. 11081L, Page 26)

Submitting your expense reports with Tallie satisfies both of these requirements. In the event of an audit, the IRS will expect you to provide consistent and complete records of all purchases and reimbursements, complete with legible receipts. To ensure you’re recording “sufficient documentary evidence,” we recommend using Tallie’s policy engine to require a receipt for any expense over $75, as per IRS document 463, chapter 5.

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One of the major benefits of expense report software like Tallie is the ability to throw away your receipts after you’ve captured their image. But will the IRS really accept a picture of a receipt in lieu of the original?

Believe it or not, the IRS has actually accepted electronic documents, including scanned receipts, since 1997 (IRS Revenue Procedure 97-22). In order to be considered valid, the receipt (or receipt image) must include the merchant’s name and address, the transaction date, the amount paid, and the business reason for your purchase. All of this information can be stored within Tallie for easy access in the event of an audit. No more hunting through shoeboxes!

Tallie also allows you to store your receipts within your chosen accounting system. Exports to QuickBooks Online and Intacct include your receipt images as part of an attachment to the Bill (Intacct) or Bill/Check/Expense (QuickBooks Online.)

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QuickBooks Desktop users can take advantage of our direct integration with SmartVault, where their electronic documents can be stored and retrieved on demand.

Tallie is the best expense management solution for strengthening your business’s internal controls. You create your custom policies within Tallie–we’ll automatically enforce them. Want to see how? Schedule a free, 1-on-1 product demo with one of our experts.

This April, Become an Expense Report Guru with FREE Tallie Training Webinars!

Throughout the month of April, we’re offering free weekly webinars to ensure you get the most out of our expense report software.

These webinars provide free training for users, administrators, and approvers alike. Lasting only 30 minutes, each training session is packed with information ranging from product guidance to live Q&A with Tallie Experts.

Register for a free April webinar below!

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TALLIE USER TRAINING

1. Walk through the creation of a Tallie expense report.
2. Share the tips and tricks to create your expense report in a few minutes.
3. Answer any and every Tallie question you have.

Register:
Tuesday 4/7 8:30 – 9:00 am PST
Tuesday 4/14 8:30 – 9:00 am PST
Tuesday 4/21 8:30 – 9:00 am PST
Tuesday 4/28 8:30 – 9:00 am PST

APPROVER TRAINING

1. Walk through the expense report approval process within Tallie.
2. Show the expense report edit feature for specified approvers.
3. Answer any and every Tallie question you have.

Register:
Thursday 4/16 8:30 – 9:00 am PST

ACCOUNTANT TRAINING

1. Provide a tour of the Tallie Accountant Portal.
2. Walk through the client account management process within the Accountant Portal.
3. Show how Tallie streamlines your accounting workflow with 1-click multi-point export and bi-directional accounting system integration.
4. Answer any and every Tallie question you have.

Register:
Thursday 4/9 8:30 – 9:00 am PST
Thursday 4/23 8:30 – 9:00 am PST

ADMINISTRATOR TRAINING

1. Walk through how to set custom policies and approval levels within Tallie.
2. Show how Tallie streamlines your expense workflow with multi-point data export and bi-directional accounting system integration.
3. Answer any and every Tallie question you have.

Register:
Thursday 4/2 8:30 – 9:00 am PST

If you have any questions between now and your chosen training webinar, please don’t hesitate to contact our Product Expert Team directly at support@usetallie.com or 888-874-1118 Ext 2. We hope to see you there!

Tallie How-To: Cash Advance Workflow in Intacct

Tallie and Intacct offer a first-of-its kind, no-click, real-time bi-directional integration. Below is the recommended process for handling cash advances when using Tallie and Intacct. This guide covers the following:

  1. How to issue an advance in Intacct.
  2. How to create a debit memo.
  3. How to create and pay the cash advance.
  4. How to apply account adjustments before paying the bill.

1. How to issue an advance in Intacct.

Open Intacct and go to Accounts Payable.

Click the plus sign next to Advances to reveal the Create Advance Payment screen.

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Create the payment for your chosen Vendor. Make sure the payment is mapped to the appropriate clearing/holding account.

Note: If not mapped to a specific Advances account, Intacct will use the default offset GL account. You can change the default account on the Configure Accounts Payable screen (see Company > Subscriptions > Accounts Payable > Configure.) To ensure there are no errors after you click Save, be sure to choose a balance sheet account.

Depending on your Payment Request settings, your payment may need to be approved. Your accountant will first need to pay the bill for it to hit the account.

2. How to create a debit memo.

Go to Accounts Payable and click Account Adjustments.

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Click Add.

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You must make sure the following key fields are accurate:

  • The Adjustment Type is set as “Debit Memo.”
  • The Vendor is associated with the user receiving the funds. This should be the same Vendor assigned to the user under Tallie’s People > Mapping page.
  • The GL Account is the same Advance or offset GL account you mapped the advance to.
  • The Amount is the same as the cash advance amount.


Click Save to finish.

3. How to create and pay the cash advance.

After your employee spends the advance, they will submit their expense report in Tallie.

Once it’s approved, Tallie will automatically create a Bill in Intacct (see Accounts Payable / Bills.)

IMPORTANT: Do not pay the bill before completing the next step.

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4. How to apply account adjustments before paying the bill.

Go to Accounts Payable and click Select Bills to Pay.

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Now select the correct Vendor under the From Vendor drop-down. The Vendor should be a) linked to the employee in Tallie, and b) the same Vendor connected to the Debit Memo.

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After you’ve selected the appropriate Vendor, click View.

You’ll see a list of bills alongside a list of applicable credits. Apply them to the Vendor’s bills before issuing payment.

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Input the credit amount to balance.

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Once the advance is applied against the bill created by the expense report, the employee payment is ready for reimbursement.

Want to learn more about our one-of-a-kind, no-click, real-time and bi-directional integration with Intacct? Schedule a 1-on-1 product demo with one of our experts. Or take advantage of our free 14-day trials— no credit card, no obligation.

FORBES: Tallie’s Expense Report Software Selected by H&R Block Small Business

As you may have heard, H&R Block recently selected Tallie as the exclusive expense reports solution for its Small Business Services. Tallie’s automated features are set to save H&R Block’s small business clients money, as well as countless hours of time spent on expense management.

On Friday, Ben Kepes wrote an article for Forbes.com explaining why this partnership is so important for small businesses:

“The reality [used to be] that integrating discrete solutions [was] time and resource-heavy and hence impractical for SMBs. If you’re an enterprise you have an IT shop with time to create custom integrations between the different solutions you use – not so for a SMB. The result, therefore, was that SMBs generally chose a monolithic solution that had as much of their functional needs as possible. Anything else was generally resolved with paper-based processes.

The rise of the cloud has changed all that. Enabled by application programming interfaces (APIs), the building blocks that let applications be readily integrated with each other, we now have a paradigm where SMBs can chose a range of different solutions and (theoretically at least) plug them in together as they see fit – so SMBs will take a core cloud accounting product, bolt on POS, HR and expense functionality and create for themselves a highly specific solution.

. . .  H&R Block is now able to offer an automated expense management solution to their customers, and thus end the annual ritual of taking ones filing agent a shoebox full of receipts. Not only will Tallie help the “shoebox syndrome” it also offers quality-assurance functionality – duplicate and error prevention and auto-categorization of expenses for example.”

We’re thrilled to be helping so many small businesses streamline their workflow, prevent expense fraud, and integrate their entire accounting system. To learn more about what makes Tallie and H&R Block Small Business Services so special, read the full article over at Forbes.com

 Automate your expense reports with Tallie FREE for 14 days – no credit card or commitment required. Care for a walkthrough by a trained expert first? You can schedule a free Tallie product demo with one of our experts.

Tallie Brings Expense Reports Solution to H&R Block Small Business Services

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Tallie Selected by H&R Block Small Business as the Exclusive Expense Reports Solution for its Client Accounting Services

Expense Report Automation Breaks Through to the Masses

SAN FRANCISCO, March 19, 2015Tallie, the leading SaaS expense report innovator, today announced it has been selected by H&R Block Small Business as the exclusive expense management solution for its small business accounting services. Tallie was chosen because its automated expense report solution aligned with H&R Block’s vision to deliver accounting services to their clients using efficient, modern business tools.

“This partnership with H&R Block Small Business leverages one of the most powerful brands in accounting to provide businesses with a service utilizing automated, mobile and robust SaaS solutions, allowing more time to focus on the growth and prosperity of their business versus spending time closing their books,” said Chris Farrell, CEO of Tallie. “This also adds a critical element in support of H&R Block Small Business’ mission to create a completely integrated, cloud-based accounting experience for their clients nationwide.”

H&R Block Small Business provides bookkeeping, payroll and a host of other accounting services to small businesses, typically service-based ventures ranging from technology startups to main street businesses such as doctors, contractors and non-profits. Leveraging state-of-the-art, cloud-based SaaS accounting applications such as Tallie, H&R Block Small Business helps companies save time and money by offering them a new, modern way of accounting.

“Cloud-based technology is changing how accountants perform and price their services,” said Jeremy Smith, director of H&R Block Small Business. “H&R Block selected Tallie because it represents the next generation of accounting. Tallie has an intimate understanding of what accountants need and offers comprehensive workflow and management services built on a cloud-based ecosystem. This combination of industry savvy and an innovative model of delivering services is exactly what we were looking for in a partner.”

Tallie plays a critical role in enabling H&R Block’s service offering because it automates the expense reporting process with smart features such as rapid receipt processing, auto categorization of expenses, duplicate prevention and policy controls. Additionally, its industry-leading mobile experience, along with its deep accounting and bill pay software integrations provide the most compelling expense solution in the marketplace.

About H&R Block

H&R Block, Inc. (NYSE: HRB) is the world’s largest consumer tax services provider. More than 650 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2014, H&R Block had annual revenues over $3.0 billion with 24.2 million tax returns prepared worldwide. Tax return preparation services are provided in approximately 12,000 company-owned and franchise retail tax offices worldwide by professional tax preparers, and through H&R Block Tax Software products. H&R Block Bank provides affordable financial services products. For more information, visit the H&R Block Newsroom.

About Tallie

Tallie is the leading SaaS expense management innovator and enabler of the complete cloud-based accounting ecosystem. In close collaboration with users, CPA practitioners, and industry-leading accounting, technology and financial partners, it has developed automated expense reports with comprehensive data capture, intelligent transaction categorization, robust approval controls and seamless software integration. Tallie has been recognized for technology leadership by CPA Practice Advisor, Inc. Magazine and The Sleeter Group. www.tallie.com

CONTACTS

Waggener Edstrom Communications
Marisa Hagerman, 415-547-7017
tallie@waggeneredstrom.com

Tallie 10.5 Release Notes: Tallie Chat, Approved Expense Reports Archive & More

Version 10.5 of Tallie is now live! This is an exciting release chock-full of improvements for admins, approvers, and users alike. Read on to learn about our expanded customer support, new administrative tools, and major product enhancements.

Product Enhancements

Tallie Chat

Now there’s another way to connect with Tallie’s award-winning Product Expert team. Tallie submitters, approvers and administrators can ask questions from directly within our product. Just click on the tab that says, “How can I help?” to initiate a chat with one of our experts.

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You can even ask a question outside of business hours (7:00 am PT to 6:00 pm PT, Monday through Friday.) If our team is offline, just leave your name, email, and a brief description. One of our experts will respond to your chat message as soon as possible.

Multiple Email Addresses

Tallie users can now forward receipts from an unlimited number of email addresses, including personal accounts. To add another address, click your name in the top right corner of the screen, pulling up the Identity Details page. Next, select “Edit your account.”

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Finally, click “Add new email to this identity.” You may now enter as many email addresses as you like.

Approvers Can See Previously Approved Reports

It’s now possible for approvers to access their previously approved reports. Simply click the “Approval” button at the top of the screen. Then, find “Approved” in the right-hand corner. Clicking it will pull up an archive of approved reports to inspect at any time. Note that approvers will only have access to the reports they have approved themselves.

You can display pending reports once again by clicking “Unapproved” in the top right corner.

Enhanced Auto-Categorization

We now provide system-wide learned categorizations for new enterprises. In addition to the pre-populated, credit-card based auto-categorization, enterprises now have the ability to auto-categorize manual and receipt uploads based on merchant. This is a major enhancement, which will not only improve the experiences of new companies, but will benefit long-time Tallie users as well.

Stylized Credit Card Icon for Non-Reimbursable Charges

The credit card icons found on your expense tiles now differ based on whether the charge is reimbursable or non-reimbursable. Non-reimbursable corporate card charges are given a bold, dark blue icon, while reimbursable credit card expenses are shown in grey. This will make it possible for you to determine which expenses are and are not reimbursable with a single glance.

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Administrator Improvements

PDF Report Displays Corporate Card

When PDF reports are printed out, corporate credit charges will be denoted as such in the details area.

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Sending Invite Email Turns on “Track Expenses”

Previously, a Tallie administrator could send their users a Welcome Email without granting any permissions. Those users would then receive an error message when attempting to log in to Tallie. Now, if an administrator forgets to give a new user access to Tallie’s features, sending a Welcome Email will automatically enable the ability to “Track Expenses.”

People: File Upload Template

You may now upload CSV files to the “People,” “Projects” and “Expense Categories” areas. We also provide templates for each. To access them, admins should select “Manage Lists” and choose from the available features. For example, if uploading a list of people, click “Upload Person List.”

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Click “Download People List Template (CSV)” in the lower left-hand corner of the lightbox, then fill out the document. Note that the uploaded list must have the same headers provided in the template, and still be in CSV format. We don’t support XLSX or other workbook templates.

Credit Card Profiles No Longer Display Transaction Totals

We found that displaying the transaction totals on connected credit cards served no purpose for the vast majority of our users. Tallie supports over 500 credit card types, and many do not display balances in this way. To ensure consistency across connected cards, the “Credit Card” area will no longer display the total transaction amounts on each.

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Bill.com: High Quality Image Exports

Expenses reports exported to Bill.com now contain high resolution image attachments.

Re-Exporting Reports to QBD Updates Existing Checks/Bills/Credit Card charges

If you export an expense report from Tallie into QuickBooks Desktop, undo the export and then re-export it, Tallie will only update the changes on the check, bill or credit card charge. This removes the possibility of duplicates, enhances our seamless integration, and helps keep the entire accounting system aligned.

For example, you might export a project, then realize you coded the wrong expenses. First, undo the export, then correct the information and export the expense reports again. This will sync Tallie and QuickBooks, ensuring that the report information in Tallie matches what’s in the accounting system.

We look forward to hearing how these upgrades have made managing your expense reports even easier. If you have any questions or comments, feel free to reach out to our Product Expert team at support@usetallie.com or by calling 888-874-1118 Ext 2.

Petty Cash & Out of Pocket Expenses: Finding the Right Solution for Reimbursable Expenses

Businesses have a number of expense management options. Many involve manual processes, and can put employees in a compromising situation. What’s the best choice for a business that wants to maximize efficiency while minimizing work?

Option 1: Paying expenses out of pocket.

Who it hurts: Mid-level employees, new hires, recent graduates.

Unlike executives, mid- and entry-level employees typically don’t have access to corporate credit cards. Instead, they are often asked to pay out of pocket. While this may not be a problem for high-earners, it can create difficulty for many employees, such as recent grads. In today’s economy, many workers struggle with debt, and simply cannot afford to pay for an entire business trip upfront. They may be unable or unwilling to float major charges on their personal credit cards, and resent being asked to do so.

Option 2: Cash advances.

Who it hurts: Accountants and administrators.

Offering a cash advance to your employees will keep them from having to front their own money. Unfortunately, cash advances are also incredibly time consuming. The documentation and reporting process requires tedious, manual work from your accountants. This is particularly frustrating in busy departments bogged down by numerous requests, especially during complicated projects.

Option 3: Petty cash.

Who it hurts: Accountants and administrators.

Some businesses keep a petty cash drawer as an alternative to their check-writing system. While this does cut down on paperwork, petty cash expenses are hard to accurately track. Without a written record, you won’t know how much of the total amount was actually spent on business. Not to mention, petty cash is impractical for major expenses like airfare. As with cash advances, if the actual expense ends up being more than the cash provided, your employee may be forced to go out of pocket after all.

Is there a better solution?

PEX Card is a prepaid business card that replaces the need for cash advances or petty cash. Cards are kept at a zero balance so you can allocate or remove funds as necessary–all with the click of a button. All purchases appear immediately within Tallie so you can authorize and monitor employee spending in real-time.

Meanwhile, Tallie automates expense management from front to back. Our smart features automatically flag potential errors, duplicates, and policy violations. Tallie even learns to auto-categorize your expenses over time.

To compare:

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Want to learn more about Tallie’s integration with PEX Card?  If you have any questions or comments, feel free to reach out to our Product Expert team at support@usetallie.com or by calling 888-874-1118 Ext 2.

3/10 WEBINAR: Encore Presentation of Tallie & PEX Card

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Miss out on our webinar with PEX Card? This is your lucky day.

Tallie & PEX Card killed petty cash. Our solution saves you money, eliminates busy work, prevents fraud, and offers total control over your expense reports.

Join us for an encore webinar presentation on Tuesday, March 10th at 10:00 am PST and dramatically improve your expense management workflow.

Our CEOs will discuss:
• Gaining industry-leading controls without the cost.
• The right tools & best practices to prevent expense fraud at your business.
• Replacing annoying cash advances & risky corporate cards with the smart option.

We hope to see you there!

Tallie How-To: Cash Advance Workflow & Expense Reports in QuickBooks Desktop

Automating your expense reports with Tallie is easy. Our bi-directional integration with QuickBooks Desktop forms an intuitive and customizable expense management solution. If you are a QuickBooks Desktop user who wants to create cash advances for your employees, here is the recommended workflow. This article will cover:

  1. How to create a cash advance account in QuickBooks Desktop.
  2. How to create and pay the cash advance.
  3. How to create the credit.
  4. How to apply the credit to the expense report.

1. To create a cash advance account in QuickBooks Desktop:

Open the Lists menu and click Chart of Accounts.

Click the Account button in the lower left corner, then click New.

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Select Other Account Types, then choose Other Current Assets, then click Continue.

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Complete the details for your account (name and description.) We recommend naming it “Employee Cash Advance.”

Click Save.

2. To create and pay the cash advance:

Click on Enter Bills under the Vendors drop-down menu.

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Input the amount you want to pay your employee, then map it to the Employee Cash Advances account.

Click Save and close.

Next, click on Pay Bills under the Vendors drop-down menu.

Check the box next to your newly created bill, then click the Pay Selected Bills button to cut the check.

3. To create the credit:

Click Enter Bills under the the Vendors menu, then select the Credit button.

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Enter the amount of the cash advance, and assign it to the employee. Be sure to map it to your Employee Cash Advances account once again.

Click Save and close.

Check Your Work:  Click Lists and then Chart of Accounts.

Make sure that the Bill and Vendor Credit are both present and that the Employee Cash Advances Account has a zero balance.

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4. To apply the credit to Tallie’s exported bill:

After your employee spends the advance, they will submit their expense report in Tallie. Approve the report to export it to QuickBooks Desktop.

Open QuickBooks Desktop and click the Pay Bills icon on your Home.

Find your employee’s expenses beside their available credit.
• If your employee spent more than the total cash advance, the excess will be paid with the bill.
• If your employee spent less than the total cash advance, the remaining credits can be kept to use later.

NOTE: You may also ask the employee to pay back the difference right away. In some states, terminated employees are not legally obligated to repay any advances or loans to their ex-employers.

Check the box next to the bill, then click Set Credits.

Check the box next to the credit, then click Done.

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Now that the credit is applied, click Pay Selected Bills. The bill should now be marked as paid.

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Want to take advantage of our integration with QuickBooks Desktop? Automate your expense reports with Tallie FREE for 14 days – no credit card or commitment required. Care for a walkthrough by a trained expert first? You can schedule a free Tallie product demo with one of our experts.