Think of all the sensitive company info on your computer. It’s all at risk if someone guesses the right 6-8 characters. Which makes it all the more disconcerting that the most popular password in America is: “password,” closely followed by “123456.”

That’s the result of a study by PCMag.com.

If your password is on that list, the time to change it is yesterday.

Of course, part of the reason people rely on such easy to remember passwords is that we need a password for almost everything these days. Many find it too difficult to have truly secure log-ins that are unique and memorable.

Tips for secure passwords

Here’s some tips for making stronger, easy to remember passwords — and keeping them private:

• Don’t write your password down. Seems like a no-brainer, but you’d be shocked how many people keep passwords on a sticky note next to their computer. If you simply must have something in writing, use a reminder, to jog your memory, not the actual password.
• Use a mix of numbers as well as upper and lower case letters. Tip: To remember which letters are uppercase, use a shortened multi-word phrase and capitalize the “start” of each word. Example: “Time for lunch” could become “Tm4Lnch”
• Avoid using a password that appears in the dictionary. Automated programs can crack these passwords as easily as a squirrel cracks an acorn.
• Another option: If you only want to remember one word, use it backward or with a “creative” spelling.
• Assign individual passwords even for shared tasks. If you have three staffers who need access to a financial account, don’t use a “team” password. If someone is tempted to misuse information, you won’t be able to trace it to the guilty party — and knowing it can’t be traced can be very tempting to some people. Instead, have IT create separate log-ins. (Note: That doesn’t mean using a sequence like, Payroll1, Payroll2, Payroll3.)

IRS recently released the following information to help you prevent fraud attempts — and to educate employees and others about what risks they may face. Here are four excellent resources you and employees should be aware of to stay safe from phishing attempts and other common fraud:

1. IRS has a special department, Identity Protection Unit, just to deal with identity theft. You can reach it by calling 800-908-4490.
2. IRS will never contact your company or any individual taxpayer via e-mail. If you get a message that claims to be from the Service, forward it to phishing@irs.gov for investigation.
3. For certain fraud attempts, you may also want to contact the Federal Trade Commission at 877-ID-THEFT.
4. At OnGuardOnline, you can get tips on how to strengthen your company’s online security, take quizzes on cyber-threats and much more.

Just under 2 million corporate and partnership income tax returns were filed electronically — more than 50% more than the prior year.

Large partnerships using e-filing increased a whopping 156% over ’07.

It’s easy to see why more companies are jumping on the bandwagon: Electronically filing your corporate tax returns and related information returns can reduce errors. And for some forms, like the 1099-MISC, extended deadlines make it more convenient to use the e-file option.

Which filing methods do you use — and why? Share your perspective in the comments.

The right vendor will help you narrow your options so you get all the functionality you need without adding services you don’t need — and which cost more.

With that in mind, here are four questions to ask potential vendors when you’re shopping for a program:

1. How much support do you offer once the program is set up? Ideally, you’ll want access to a dedicated rep who can answer your questions. Depending on how complicated your program is and what new software you may be adding, it may be a good idea to have scheduled training sessions with someone from the card issuer. If that’s the case, make sure the training is done efficiently (no drawn out multi-day programs) and that it’s not a separate charge.
2. How much paper/time/money will this actually save us? If parts of the process (like handling receipts and P.O.s) are still manual, or will require printing out documentation, you may not be getting as much benefit as it seems. Get a detailed estimate of how much time and money you’ll be saving with the proposed system. And then figure out how long it’ll take for those savings to recoup your upfront expenses.
3. Does your program address our biggest headache? If T&E is where most of your paperwork roadblocks develop, a standard p-card program probably won’t suit you as well as a travel-specific card. Make sure potential vendors know what your top concern is — and that their programs are adapted to meet those needs.
4. How secure is our info? No financial transaction should even be considered until you have solid answers about how secure all the electronically based info really is.

If you’ve already been down this road, what questions are you glad you asked your vendor — or wish in hindsight you had? Share your perspective in the comments.

To keep controls tight, save time and prevent fraud, a well-written policy on credit and purchasing card usage is a must-have. The question is: What exactly should it cover?

Although the finer points will vary depending on your specific company, industry and even the card program you choose, there are a few areas of universal concern. Based on recommendations by the National Association of Purchasing Card Professionals we suggest that at minimum, your policy clearly outline the following:

1. Types of transactions that are/aren’t allowed
2. Spending limits (by transaction type, time period and/or department/project)
3. A list of preferred suppliers (and if any rebates apply, it’s worth highlighting that information)
4. Procedures for card users and approvers. This should include everything from how a card is activated to documentation required for purchases, the approval process and how to handle rejected charges/fraud/lost or stolen cards.

All cardholders should also have a copy of a cardholder agreement — basically a list of their rights and responsibilities. This can be either a separate document, or included in your general card policy.

Getting the word out

Once you have a card policy in place, it’s important to keep it updated. At minimum, it should be reviewed once a year. Whether any changes are made, distribute the “updated” policy to all departments and cardholders. (It’s a good idea to give a copy to administrative assistants too, since they often end up actually submitting the paperwork to Accounting.)

When you distribute the policy, use multiple methods to ensure that no one “overlooks” the news. For example, you could post a copy on your company intranet, and also e-mail an electronic version to relevant departments. Having a few hard copies of the policy on hand is a good idea since some people simply won’t bother with electronic versions.

Bottom line: The more you can keep the policy “top of mind” for cardholders (and approvers) the more likely they are to actually stick to procedure. And that means fewer mistakes, improper charges or headaches for Accounting to deal with.

Total spending on purchasing cards is expected to grow 12% per year between now and 2012, according to the latest “Purchasing Card Benchmark Survey” by RPMG Research. In 2007, $137 billion in transactions were put on p-cards.

The growth is coming from two main drivers:

1. the amount spent per transaction is up 6%, and
2. cards are assigned to more people/departments within companies.

In fact, 80% of companies using p-cards in ’05 reported more p-card spending in ’07. And it’s not just large companies leading the way. More mid-sized companies reported increased spending than any other size of company.

In particular, companies were increasingly likely to use p-cards for purchases of:

• computers and peripheral equipment
• telecommunications services and products
• printing and copying services
• advertising and media, and
• transportation or delivery services.

Why the increase in usage?

It’s all about the bottom line. The average cost to process and pay a transaction on a purchasing card is about $70 less than using the old-school paper P.O./check method.

If your company (or a key vendor) has been reluctant to try p-cards, it’s worth revisiting the issue. With significant savings possible, setting up a card program could quickly make up for any upfront costs.

If you’re worried less about cost and more about headaches and aggravation while you’re switching over, bear in mind that choosing a solid card vendor can eliminate most hassle. And starting small — say, by only using cards in one department or with one vendor — can help you work out the kinks early and minimize disruption.

Here are six questions to put to potential card issuers to compare offers and make sure your company is getting the most bang for its bucks:

1. Is there any cost for participating the rewards program? (If so, ensure you’d earn enough back to make up for the additional cost.)
2. Is there a minimum charge volume you have to reach before rewards kick in? If so, is it tiered? (Example, you’d receive 0.25% back after spending $10k; 0.5% up to $25k; 1% for any amounts over 1%, etc.)
3. What criteria are used to determine rewards? Common factors include: total volume of spending; average spending per card; amount spent in certain merchant categories, etc.
4. Are there preferred vendors with whom we can earn additional rewards?
5. Will our rewards be affected if we already have negotiated discounts with participating vendors?
6. Do we have an option for choosing different types of rewards: travel vouchers, cash rebates, perks like free shipping, etc.

Any advice to share on how to get more rewards from corporate card issuers? Share ‘em in the comments.

Shoring up the economy is priority No. 1 for the new administration. While the expected changes aren’t aimed directly at Accounting pros, many of them could shake up some of your internal procedures.

Tightening federal regulation

Obama has said one of his goals post-credit-crisis is to keep tighter reins on Wall Street and the larger financial market. Among the plans is consolidating the regulatory system by streamlining federal agencies with enforcement power.

Even if you’re not directly affected by the moves, they should ultimately result in clearer compliance requirements for everyone. Plus, as banks have to adapt internal policies to meet new regs, the moves are expected to give bank customers better information on their options.

Encouraging updated business technology

Increased tech investment is looking like it’ll be a cornerstone of the next economic cycle, and Obama’s administration is expected to push for more high-speed Internet access across the country and the globe. Eventually, that’ll make it easier for you to interact electronically with other businesses, the feds and state agencies regarding online payments, compliance issues and everything in between.

That’s exactly what happened to the lawyers representing Barclays Capital in its recent takeover of Lehman Brothers.

A first-year associate with the firm was asked to reformat an Excel spreadsheet listing assets that would be transferred as part of the deal. But the lawyer, working on tight deadline and under intense pressure, wasn’t familiar with Excel. And when he “resized” the spreadsheet, he inadvertently included 179 assets that were listed in a “hidden” portion of the spreadsheet.

No one caught the error, and the assets were incorrectly included in the final agreement.

Now, the companies have to file a motion with the court to exclude the “new” items.

Just goes to show: You can’t send an attorney to do the work of an accountant — unless you’re OK with its really getting screwed up.

Two new services make your life a little easier:

1. Special Wage Payments (SWP)– In Jan. 2009, SSA’s Electronic Wage Reporting suite will have an application for TY ’08 that allows you to electronically submit SWP data.
2. Electronic Wage Reporting (EWR)– EWR services will be improved so that registered users with multiple Employer Identification Numbers can have them all associated with a single User ID. 

Password update

Don’t forget: Due to security upgrades, the next time you try to log onto the site, you’ll have to provide answers to five questions. The information will be used as a backup in case you ever forget your password in the future. Without a password, if you can answer three of the five security questions, you’ll be allowed to log on and reset the password.