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 SALE Order information is entered into the SALES JOURNAL, ACCOUNTS RECEIVABLE RECORD and the INVENTORY RECORDS. You receive a PURCHASE ORDER or an ORDER FORM (through your website, mail, or fax). Staple the PURCHASE ORDER/ORDER FORM and INVOICE together and file in a binder in numerical order by Invoice. The Accounting Department creates an 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 Sale to Lizzie Grubman 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

Accounts Receivable Record Balance for Lizzie Grubman Customer: Lizzie Grubman DATE INVOICE # INVOICE AMOUNT AMOUNT PAID INVOICE BALANCE 1 23-Oct   532.26 2 3

Accounts Receivable Controlling Record Balance for Lizzie Grubman DATE CUSTOMER BALANCE 1   Lizzie Grubman 532.26 2 Johnny Damon 1145.99 3

Invoice

MAKING A PURCHASE 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. Your company completes a PURCHASE ORDER from another company and sends it out. Keep a file copy in the PURCHASES binder. The invoice and the original purchase order is forwarded to the Bank Manager. If the purchase was for inventory, update the INVENTORY RECORDS. The Bank Manager pays the bill, marks it paid, and files it.

Purchasing Journal One purchase DATE VENDOR INVOICE # DESCRIPTION AMOUNT 1 21-Oct VEC Trading   lamps 725 2 25-Oct 825 3 29-Oct 450 4

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 5 Total Amt. One purchase

Accounts Payable Controlling Record Total Amt. DATE VENDOR BALANCE 1   VEC Trading 2000.00 2 3 4

Value of Inventory on Hand Inventory Record Item Name: Budget lamps   Inventory Level Item #: Minimum: Description: Maximum: Purchased Sold Balance Date Units Unit Cost Total Cost of Goods Sold 21-Oct 10 100 23-Oct 6 60 4 40 25-Oct 20 200 24 240 27-Oct 17 170 7 70 29-Oct 27 270 Value of Inventory on Hand Total Units on Hand

Value of Inventory on Hand Inventory Record Value of Inventory on Hand Item Name: Standard Lamps   Inventory Level Item #: Minimum: Description: Maximum: Purchased Sold Balance Date Units Unit Cost Total Cost of Goods Sold 21-Oct 10 25 250 23-Oct 4 100 6 150 25-Oct 16 400 27-Oct 8 200 29-Oct 18 450 Total Units on Hand

Inventory Control Value of Inventory on Hand linked from Individual Records Quantity of Inventory on Hand linked from Individual Records 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

RECORDING CASH RECEIPTS AND PAYMENTS 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). Each week the Bank Manager prints out a copy of the current bank transactions. 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 and Payments Journal Enter in the Receipt or Payment Enter in the Explanation

Accounts Receivable Record Enter in payment received Customer: Lizzie Grubman DATE INVOICE # INVOICE AMOUNT AMOUNT PAID INVOICE BALANCE 1 23-Oct   532.26 2 3

Accounts Payable Record Enter in amount paid 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 5

PAYROLL The 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. 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. The Bank Manager pays each employee. Note: Payroll is completed twice a month.

Payroll Register

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