Plastic is becoming the new paper.  In the last year, credit cards have become the most preferred payment form in the United States.  With the increased acceptance of non-cash or check payments in addition to the costs of cutting and mailing a check, companies are turning to credit cards for daily business needs.  The cost of cutting a payable check can be between $3-$4 based on 2015 numbers (higher than that now in 2017).  Multiple that cost by the number of checks a business cuts per month and that cost can be very surprising.  Companies that are starting to understand this cost and are looking for ways to reduce it.  One option is using company credit cards, which can lower payable’s costs along with providing other benefits such as maximizing cash flow, earning rebates and incentives and taking advantage of other “soft” perks like airline miles, extended warranties, and fraud protection.

There are many types of cards out there:  small business cards, corporate cards and virtual cards.  Each comes with its own parameters, benefits and risks.  Every company has specific and unique needs and preferences that need to be considered when selecting the card type.  Some businesses will use a variety of card types.

Paying invoices with a credit card allows companies to pay vendors on time without the immediate cash flow outlay as the cash doesn’t leave the business until the credit card balance is paid.  It can actually allow a company to increase their working capital without straining business relationships.

There are risks that come with these programs that can be controlled with proper financial controls in place.  Some examples of controls to be put in place are:  limiting Merchant Category Codes (MCC’s) on certain users cards, setting balance limits by user and role, requiring expense reports submitted to manager for review and approval, have users sign a waiver detailing personal liability on unauthorized purchases and having a formal audit schedule in place to review transactions and receipts.

Every business must consider its company needs, risk tolerances and other factors when deciding to use company credit cards.  However, it is becoming a more and more common practice that each company should take a look at as to how it currently handles payables and if there might be a different solution for them.

Every sales person asks themselves the question, “Why do they buy from me?” I used to think that it was because I would give them the best price. For a while I thought it was because we delivered a product that was far superior to others. Then I thought it was because of the personal relationship I developed with them.

Over the last 20 years I have found these to be critical to my team’s success:

• It is significantly harder to attract a new customer versus maintaining one. The hard part of convincing them to work with you is over. Now you have to deliver on what you promised. The wolves will always be at their door so you have to continue to stay in front and fight off the wolves.

• Own it, even if it wasn’t you personally. You are your company and your company is you. The customer doesn’t care if the guy who worked for you was incompetent or the vendor screwed up. You are them and they are you. Thus you make a mistake the team makes a mistake and vice versa.

• Know your customers personality and what they want from you. I used to think that a customer always wanted to talk to me about their family, hunting, cars, you name it. What I found out is that some do and some don’t. Adapt your style to what they want. Some people want to be all business and others want it to be personal.

• It’s okay to make money. Great partners understand that in order for you to be in business you have to be profitable. If you are doing a turnkey solution you have to cover the soft costs of the management of process. Remember that if you charge a premium you better deliver on it.

• Just because the first price is the lowest it doesn’t mean the last price will be. If you are good at seeing potential issues before they happen you can be a great asset to your customer. If all you look at it the perfect scenario, your customer then is at risk for additional unexpected costs. That “introductory” price becomes less attractive when you realize that the car didn’t have an engine. Make sure you are educated on what could happen and what will.

At Pleune  Service Company, we value our customers. Our team of account managers and sales people are laser focused on delivering a best in the market experience any time and every time.

We are excited to announce that our Lansing facility has moved to 4302 S. Creyts Rd! We would like to extend a big thank you to our team for getting us moved quickly. We are excited to get down to business in our new location!

Fact Sheet: Final Rule to Implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors

Accrual

Under the Final Rule, employees accrue 1 hour of paid sick leave for every 30 hours worked on or in connection with a covered contract. As to employees for whom contractors are not already required to keep records of hours worked pursuant to the DBA, SCA, or FLSA (such as employees who are employed in a bona fide executive, administrative, or professional capacity under FLSA regulations), contractors can use the assumption that the employees are working on or in connection with covered contracts for 40 hours each week. Contractors are also permitted to use an estimate of time their employees work in connection with (rather than on) a covered contract as long as the estimate is reasonable and based on verifiable information.

Maximum Accrual, Carryover, Reinstatement, and Payment for Unused Leave

The Final Rule provides that contractors may limit the amount of paid sick leave employees may accrue to 56 hours each year and must permit employees to carry over accrued, unused paid sick leave from one year to the next. The Final Rule also allows contractors to limit the amount of paid sick leave employees have accrued to 56 hours at any point in time. Furthermore, contractors are required to reinstate employees’ accrued, unused paid sick leave if the employees are rehired by the same contractor within 12 months after a job separation unless contractors provide payment to employees for accrued, unused paid sick leave upon separation. Contractors are not required to pay employees for accrued, unused paid sick leave at the time of a job separation (“cash-out”); however, if they do provide cash-out, they will not be required to reinstate unused leave.

Every year the ESOP (Employee Stock Ownership Plan) Association Michigan Chapter presents its distinguished Company of the year award at its annual Lansing Conference. This year, Pleune Service Company was honored to receive the award from the Chapter’s President David Bosch.

In attendance to receive the award were 6 of 7 ESOP Committee Members, Ken Misiewicz (CEO/President), Jill Malone (Trustee and VP of Human Resources – Administration), and Jennifer Murphy (Trustee and CFO). The award is the first for the Organization in its 29^th year of becoming an ESOP.

Employee Ownership and Culture is the foundation of Pleune Service Company’s mission statement, value statement, and business plan. An excerpt from the Company’s award submission letter captures the essence of the Organizations focus on its most regarded asset, its people: “Our employee owners make Pleune Service Company what it is today. Staying focused on our core values; Integrity, respect, persistence, quality, teamwork, education, and customer oriented, assist Pleune Service Company in making decisions that benefit our current employee owners and future employee owners. Pleune Service Company strives for engagement. We want our employee owners to feel like they have a voice and they do. We do not have a single owner like most organizations, rather 115 employee owners and we are very proud of that!”