Invoices/Purchase Orders/Order Forms (copies of forms) Sales Journal/Accounts Receivable Record (Excel

spreadsheets) Purchases (copies of forms) Purchases Journal/Accounts Payable Record (Excel

spreadsheets) Cash Receipts and Payments Journal (Excel spreadsheets) Inventory Log (Excel spreadsheets) Tax Forms (copies of forms prepared in Excel) Payroll (Excel spreadsheets) Bank Statements (copies of bank statements)

You receive a PURCHASE ORDER or an ORDER FORM (through your website, mail, or fax).

Order information is entered into the SALES JOURNAL/ACCOUNTS RECEIVABLE RECORD and the INVENTORY RECORDS.

A Sales Associate creates an INVOICE.

Staple the PURCHASE ORDER/ORDER FORM and INVOICE together and file in a binder in numerical order by Invoice.

Send the Invoice to the customer. Order INVENTORY when needed.

Your company prepares a PURCHASE ORDER and sends it to another company (vendor). Keep a file copy in the PURCHASES binder.

You receive an invoice from the company.

The Bank Manager pays the bill, marks it paid, and files it.

The invoice is forwarded to the Bank Manager.

If the purchase is for inventory, update the INVENTORY RECORDS.

Enter the information in the PURCHASES JOURNAL/ACCOUNTS PAYABLE RECORD

Each week the Bank Manager prints out a copy of the current bank transactions.

The Accounting Department records ALL transactions in the CASH RECEIPTS AND PAYMENTS JOURNAL in the appropriate places (as payments or receipts of cash and an explanation).

If one of the invoices that you sent out has been paid, retrieve the invoice from the binder, mark it paid, and file it. Update the SALES JOURNAL/ ACCOUNTS RECEIVABLE RECORD to reflect the payment.

When you pay invoices from vendors that your firm has purchased from, update the PURCHASES JOURNAL/ACCOUNTS PAYABLE RECORD.

The Payroll Manager completes the PAYROLL REGISTER for the pay period. The original is filed in a binder and a copy is given to the Bank Manager.

The Payroll Associate creates and distributes pay stubs.

The Bank Manager pays each employee.

By the 15th of the month, the Payroll Manager prepares the 941 Tax Withholding form for the prior month’s payroll. The data is submitted to the VEC. The form is filed with the payroll records.

Note: Payroll is completed twice a month.

By the 15th of the month, the Bank Manager pays the payroll taxes that have been reported on the 941 Tax withholding form. The payment is recorded in the CASH RECEIPTS AND PAYMENTS JOURNAL.

Sales Journal/Accounts Receivable, Purchases Journal/Accounts Payable, and Inventory Records are updated as needed.

Payroll is completed twice a month. Bank Statements should be printed out at least once a

week. Cash Receipts and Payments Journal should be updated

each time a bank statement is printed. Tax Forms should be completed according to the calendar.

◦ 941 – monthly ◦ Sales tax – quarterly◦ W2 and W3 – yearly◦ 1040 individual tax return – yearly◦ 1120 Corporate tax return – yearly