Accounts Payable Filing System Should Be Set Up

When you determine the payment date for the invoice file it under that day.

Accounts payable filing system should be set up.

You can head these up with either the bank account type daily transactions account savings account tax account etc or use the account number. Although any type of file folder will work. Or scan save them to an electronic filing system. Filing system accounts receivable accounts payable friendly step 1.

Once your system is set up every receipt business credit card item and incoming bill should be entered into your digital file. Credit card business filing system tip avoid stapling documents in the top left corner it really isn t necessary to staple everything. One filing cabinet or drawer is for daily files which are usually stored away after year end. For example if the unpaid bills add up to 5 000 your accounts payable account must show 5 000.

File accounts payable documents by payment date. After invoices are matched with supporting documents check the due date and set a payment date for the invoice. Label an a r and a p file. You may break these down into as many subcategories as you like e g a r 30.

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. Organize the invoices in folders that represent each day of the month. Purchase hanging wall files from your local stationary store. Each invoice should be stored with relevant account information and contain the date of arrival the due date and any pertinent comments.

Enter into the vendor master file in the software the names addresses payment terms and default. Buy an off the shelf accounting software package that contains an accounts payable module. Implementing a filing system in the accounting office poses certain challenges but it can be done successfully and increase the department s efficiency. If you don t receive a statement and.

Set up two kinds of files. You ll also need to keep your paper bills organized. 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. These files include most of your expense and income items.

Vendor invoice folders accounts payable customer invoice folders accounts receivable and additional files as.