Accounts Payable Filing System

This just means you are double checking that your bookkeeping system contains all the unpaid bills that you have received and that the combined total owing is accurate in the system.

Accounts payable filing system.

When you determine the payment date for the invoice file it under that day. Implementing a filing system in the accounting office poses certain challenges but it can be done successfully and increase the department s efficiency. One filing cabinet or drawer is for daily files which are usually stored away after year end. File accounts payable documents by payment date.

Vendor invoice folders accounts payable customer invoice folders accounts receivable and additional files. Keep a dedicated digital and analog filing system for your accounts payable department. Assign a filing cabinet or a drawer in the filing cabinet for each of the following. After invoices are matched with supporting documents check the due date and set a payment date for the invoice.

The following steps can be used to set up such a system. Each invoice should be stored with relevant account information and contain the date of arrival the due date and any pertinent comments. If your company incorporates employee expenses into your accounts payable system you might insist that employees use a business credit card one per employee for paying and filing expenses. Set up two kinds of files.

These files include most of your expense and income items. Some bookkeepers enter them into the bookkeeping system as a bank account and reconcile them like a bank account so therefore you can treat them in the business filing system the same way you would a normal bank statement. An accounts payable system pays the bills of a business in an organized manner. For example if the unpaid bills add up to 5 000 your accounts payable account must show 5 000.

While most bills these days can handled electronically any paper bills should be kept as well along with their stub. The goals of this system are to make payments in a timely manner and to pay the correct amounts to the correct suppliers. The accounts payable process might be carried out by an accounts payable department in a large corporation by a small staff in a medium sized company or by a bookkeeper or perhaps the owner in a small business. First what does it mean to reconcile accounts payable.

Organize the invoices in folders that represent each day of the month.