Accounts Payable Filing System

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.

Accounts payable filing system. Regardless of the company s size the mission of accounts payable is to pay only the company s bills and invoices that are legitimate. First what does it mean to reconcile accounts payable. Vendor invoice folders accounts payable customer invoice folders accounts receivable and additional files. 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.

While most bills these days can handled electronically any paper bills should be kept as well along with their stub. These files include most of your expense and income items. Keep a dedicated digital and analog filing system for your accounts payable department. 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.

Organize the invoices in folders that represent each day of the month. After invoices are matched with supporting documents check the due date and set a payment date for the invoice. The goals of this system are to make payments in a timely manner and to pay the correct amounts to the correct suppliers. One filing cabinet or drawer is for daily files which are usually stored away after year end.

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. Implementing a filing system in the accounting office poses certain challenges but it can be done successfully and increase the department s efficiency. Assign a filing cabinet or a drawer in the filing cabinet for each of the following.

Set up two kinds of files. 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. File accounts payable documents by payment date.

A business will have different types of tax to take care of the main ones being payroll tax sales tax and income tax.