Accounts Payable Filing System Should Be Set Up

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

Accounts payable filing system should be set up. For a r still outstanding it might be a good idea to send a follow up invoice or statement of account. Move paid invoices from the a r or a p file into a permanent file. Credit card business filing system tip avoid stapling documents in the top left corner it really isn t necessary to staple everything. Setting up accounts payable.

Or scan save them to an electronic filing system. A good accounting filing system can significantly reduce the time and effort it takes to manage your company s finances. If you don t receive a statement and. Keep a dedicated digital and analog filing system for your accounts payable department.

Regardless of the company s size the mission of accounts payable is to pay only the company s bills and invoices that are legitimate. When you determine the payment date for the invoice file it under that day. Your permanent filing system can take on either of the forms we have already discussed in previous posts by vendor by month. After invoices are matched with supporting documents check the due date and set a payment date for the invoice.

Each invoice should be stored with relevant account information and contain the date of arrival the due date and any pertinent comments. Setting up a clear collections policy at the outset of establishing an accounts receivable system is the best way to lay a groundwork for collecting overdue amounts. You should receive a statement from each of your suppliers at least once a month listing all the purchases you made from them during the previous 4 weeks. Enter each invoice into the accounts payable system.

You can head these up with either the bank account type daily transactions account savings account tax account etc or use the account number. Doing so includes entering the invoice date not the date of receipt and the payable amount. Recognizing trouble spots once you re accustomed to your accounts payable system you ll start to observe trends. For example if the unpaid bills add up to 5 000 your accounts payable account must show 5 000.

How to set up an accounting filing system. It also makes the annual task of. Enter into the vendor master file in the software the names addresses payment terms and default general ledger expense accounts that apply to each supplier. File accounts payable documents by payment date.