ACCOUNTING DEPARTMENT WORKFLOW

Binders Needed:

Invoices/Purchase Orders/Order Forms (copies of forms) Sales Journal, Accounts Receivable (Excel spreadsheets) Purchases (copies of forms) Purchasing Journal, Accounts Payable (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)

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

The Accounting Department creates an INVOICE.

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

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.

Note: Review the Invoice binder periodically and send out overdue reminders.

Order Form

Sales Journal

DATE CUSTOMER INVOICE # SALE AMOUNT SALES TAX TOTAL

1 23-Oct Lizzie Grubman   490 42.26 532.26

2 27-Oct Johnny Damon   1055 90.99 1145.99

3            

4            

5            

Sale to Lizzie

Grubman

Accounts Receivable Record

Customer: Lizzie Grubman

DATE INVOICE #INVOICE

AMOUNT AMOUNT PAID INVOICE BALANCE

1 23-Oct   532.26   532.26

2         532.26

3         532.26

Balance for Lizzie

Grubman

Accounts Receivable Controlling Record

DATE CUSTOMER BALANCE

1   Lizzie Grubman 532.26

2   Johnny Damon 1145.99

3      

Balance for Lizzie

Grubman

Invoice

MAKING A PURCHASE

Your company completes a PURCHASE ORDER from another company and sends it out. Keep a file copy in the PURCHASES binder.

You receive an invoice from the company. The Accounting Department records the information in the PURCHASES JOURNAL, ACCOUNTS PAYABLE RECORD, AND ACCOUNTS PAYABLE CONTROLLING RECORD.

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

The invoice and the original purchase order is forwarded to the Bank Manager.

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

Purchasing Journal

DATE VENDOR INVOICE # DESCRIPTION AMOUNT

1 21-Oct VEC Trading   lamps 725

2 25-Oct VEC Trading   lamps 825

3 29-Oct VEC Trading   lamps 450

4          

One purchase

Accounts Payable Record

Vendor Name: VEC Trading  

DATE INVOICE # INVOICE AMOUNT AMOUNT PAID INVOICE BALANCE

1 21-Oct   725   725.00

2 25-Oct   825   1550.00

3 29-Oct   450   2000.00

4         2000.00

5         2000.00

One purchase

Total Amt.

Accounts PayableControlling Record

DATE VENDOR BALANCE

1   VEC Trading 2000.00

2      

3      

4      

Total Amt.

Inventory RecordItem Name: Budget lamps  

Inventory Level

Item #:       Minimum:  

Description:       Maximum:  

Purchased Sold Balance

Date UnitsUnit Cost Total Units

Unit Cost

Cost of Goods Sold Units

Unit Cost Total

21-Oct 10 10 100     0 10   100

23-Oct     0 6 10 60 4   40

25-Oct 20 10 200     0 24   240

27-Oct     0 17 10 170 7   70

29-Oct 20 10 200     0 27   270

Total Units on Hand

Value of Inventory on

Hand

Inventory RecordItem Name: Standard Lamps  

Inventory Level

Item #:       Minimum:  

Description:       Maximum:  

Purchased Sold Balance

Date UnitsUnit Cost Total Units

Unit Cost

Cost of Goods Sold Units

Unit Cost Total

21-Oct 10 25 250     0 10   250

23-Oct     0 4 25 100 6   150

25-Oct 10 25 250     0 16   400

27-Oct     0 8 25 200 8   200

29-Oct 10 25 250     0 18   450

Total Units on Hand

Value of Inventory on

Hand

Inventory Control

DATE ITEM NAME ITEM #QUANTITY ON

HAND COST TOTAL

1   Budget lamps   27   270

2   Standard Lamps   18   450

3   Deluxe lamps   7   525

4            

5            

6            

Value of Inventory on Hand linked

from Individual Records

Quantity of Inventory on Hand linked

from Individual Records

RECORDING CASH RECEIPTS AND PAYMENTS

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 ACCOUNTS RECEIVABLE RECORD to reflect the payment.

Any invoices that your company paid another company (because you purchased something from them) is updated in the ACCOUNTS PAYABLE RECORD.

Cash Receipts andPayments Journal

REF. # DATE DESCRIPTION

CASH RECEIPT

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EXPLANATION

Enter in the Receipt or Payment

Enter in the Explanation

Accounts Receivable Record

Customer: Lizzie Grubman

DATE INVOICE #INVOICE

AMOUNT AMOUNT PAID INVOICE BALANCE

1 23-Oct   532.26   532.26

2         532.26

3         532.26

Enter in payment received

Accounts Payable Record

Vendor Name: VEC Trading  

DATE INVOICE # INVOICE AMOUNT AMOUNT PAID INVOICE BALANCE

1 21-Oct   725   725.00

2 25-Oct   825   1550.00

3 29-Oct   450   2000.00

4         2000.00

5         2000.00

Enter in amount

paid

PAYROLLThe Payroll Associate 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.

On the 15th of the month, the Bank Manager submits and pays the 941 tax form for the previous month. All tax forms are filed in a binder.

Note: Payroll is completed twice a month.

Payroll Register

Firm NameSemimonthly Payroll RegisterPay Period: From_________________ To _____________________

NAME# of W-4

exemptions HOURSHOURLY

RATE GROSSSOCIAL

SECURITYMEDI-CARE

Taxable Fed.

Income FWT SWT 401 (K)TOTAL DE-DUCTIONS NET PAY

1 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.002 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.003 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.004 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.00

SUMMARY

Accounts Receivable, 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