Accounts Payable Filing System

File accounts payable documents by payment date.

Accounts payable filing system.

Assign a filing cabinet or a drawer in the filing cabinet for each of the following. A business will have different types of tax to take care of the main ones being payroll tax sales tax and income tax. First what does it mean to reconcile accounts payable. Set up two kinds of files.

Organize the invoices in folders that represent each day of the month. When you determine the payment date for the invoice file it under that day. While most bills these days can handled electronically any paper bills should be kept as well along with their stub. An accounts payable system pays the bills of a business in an organized manner.

After invoices are matched with supporting documents check the due date and set a payment date for the invoice. Filing system accounts receivable accounts payable friendly by cory on september 22 2011 in filing system record keeping so in previous posts we covered the importance of having a good filing system. These files include most of your expense and income items. For example if the unpaid bills add up to 5 000 your accounts payable account must show 5 000.

One filing cabinet or drawer is for daily files which are usually stored away after year end. 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. 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.

The following steps can be used to set up such a system. 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. Regardless of the company s size the mission of accounts payable is to pay only the company s bills and invoices that are legitimate. 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.

The goals of this system are to make payments in a timely manner and to pay the correct amounts to the correct suppliers.