Presentation on theme: "ACCOUNTING DEPARTMENT WORKFLOW. Binders Needed: Invoices/Purchase Orders/Order Forms (copies of forms) Sales Journal, Accounts Receivable (Excel spreadsheets)"— Presentation transcript:
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 You 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.
Sales Journal DATECUSTOMERINVOICE #SALE AMOUNTSALES TAXTOTAL 123-OctLizzie Grubman OctJohnny Damon Sale to Lizzie Grubman
Accounts Receivable Record Customer:Lizzie Grubman DATEINVOICE # INVOICE AMOUNTAMOUNT PAIDINVOICE BALANCE 123-Oct Balance for Lizzie Grubman
Accounts Receivable Controlling Record DATECUSTOMERBALANCE 1 Lizzie Grubman Johnny Damon Balance for Lizzie Grubman
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.
Accounts Payable Record Vendor Name:VEC Trading DATEINVOICE #INVOICE AMOUNTAMOUNT PAIDINVOICE BALANCE 121-Oct Oct Oct One purchase Total Amt.
Accounts Payable Controlling Record DATEVENDORBALANCE 1 VEC Trading Total Amt.
Inventory Record Item Name:Budget lamps Inventory Level Item #: Minimum: Description: Maximum: PurchasedSoldBalance DateUnits Unit CostTotalUnits Unit Cost Cost of Goods SoldUnits Unit CostTotal 21-Oct Oct Oct Oct Oct Total Units on Hand Value of Inventory on Hand
Inventory Record Item Name:Standard Lamps Inventory Level Item #: Minimum: Description: Maximum: PurchasedSoldBalance DateUnits Unit CostTotalUnits Unit Cost Cost of Goods SoldUnits Unit CostTotal 21-Oct Oct Oct Oct Oct Total Units on Hand Value of Inventory on Hand
Inventory Control DATEITEM NAMEITEM # QUANTITY ON HANDCOSTTOTAL 1 Budget lamps Standard Lamps Deluxe lamps 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 and Payments Journal Enter in the Receipt or Payment Enter in the Explanation
Accounts Receivable Record Customer:Lizzie Grubman DATEINVOICE # INVOICE AMOUNTAMOUNT PAIDINVOICE BALANCE 123-Oct Enter in payment received
Accounts Payable Record Vendor Name:VEC Trading DATEINVOICE #INVOICE AMOUNTAMOUNT PAIDINVOICE BALANCE 121-Oct Oct Oct Enter in amount paid
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. The Bank Manager pays each employee. On the 15 th 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.
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