February 2025: VMF Solutions for Tax Season Success

February is the perfect time to revisit your Vendor Master File (VMF). With tax season in full swing, it’s crucial to ensure your VMF is accurate and up-to-date to streamline your AP and AR operations and avoid potential compliance headaches. This month’s Insider offers practical tips and tools to help you tackle VMF challenges with confidence, minimize risks, and optimize your workflows. 

This Month’s Quick Take: 3 Steps to Keeping Your VMF in Top Shape 

A well-maintained Vendor Master File is essential for streamlining operations and avoiding compliance pitfalls—especially during tax season. Here’s how to keep your VMF in peak condition: 

1. Audit and Cleanse Your Data: Take a deep dive into your vendor records to identify incomplete, duplicate, or outdated entries. Prioritize removing redundant data and updating missing details, such as tax IDs, payment terms, and contact information. Regular data cleansing ensures your records are accurate, reliable, and ready for tax season.   
2. Standardize Your Processes: Set your team up for success by implementing consistent data entry standards. Define required fields for vendor setup and enforce these standards to minimize errors and improve accuracy across the board. 
3. Strengthen Vendor Verification: Protect your organization by validating vendor authenticity. Use tools like IRS TIN matching, OFAC compliance checks, and fraud detection systems to conduct periodic verification. These steps reduce the risk of fraud, non-compliance, and costly errors. 

Vendor Address Recovery Made Simple 

This article explores practical, cost-effective solutions for locating missing vendor addresses, from leveraging public databases to using vendor contact outreach tools. You’ll discover actionable strategies to ensure complete and accurate vendor records without breaking the bank. 

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Stay Vigilant 

A recent report from an IOFM Member uncovered a scam involving fraudulent currency conversions that targeted their organization. This highlights the importance of vigilance in managing your VMF, as fraud often originates from inaccuracies or oversights in vendor data. Learn how to spot red flags and safeguard your organization from similar risks. 

DISCOVER TIPS

FREE WEBINAR: Strategies to Handle Vendor Calls and Returned 1099s After IRS Tax Form Distribution to Vendors 

Vendor inquiries and returned 1099s are part of tax season—handle them with ease! Join IOFM and Debra Richardson for a free, on-demand webinar to learn how to efficiently manage vendor calls and returned tax forms. Plus, discover a simple, standardized document to streamline responses and improve vendor communications. 

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Set Your Non-U.S. Vendor Strategy in Motion 

In this first installment of our non-U.S. vendor setup series, Debra Richardson reveals how identifying your international vendors by country and quantity is the key first step to creating an accurate, organized Vendor Master File. Want to dive deeper? Be sure to check out the next installments in the series to continue refining your process. 

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MEMBER WEBINAR: Guarding Your Revenue: Understanding and Preventing Accounts Receivable Fraud 

External fraud is becoming more common—don’t let your organization fall victim! Join IOFM and Debra Richardson for an on-demand webinar for the kickoff of our Members-Only Quarterly Fraud Webinar series! Discover how AR fraud is becoming a bigger threat for businesses of all sizes, explore common fraudster tactics, and learn how to identify key red flags to protect your bottom line. 

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MEMBER WEBINAR: Backup Withholding, The Forgotten Piece of the 1099 World 

Don’t risk IRS penalties! Join IOFM and Jason Dinesen for an on-demand webinar covering a deep dive into backup withholding, a key but often overlooked part of the 1099 process. Learn when and how to apply backup withholding to avoid costly mistakes. 

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