1. ACCOUNTING DEPARTMENT WORKFLOW

2. 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)

3. 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.

4. Order Form

5. 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 3 4 5

6. 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

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

8. Invoice

9. 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.

10. 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

11. 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 3
29-Oct
450 4 5
Total Amt.
One purchase

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

13. 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

14. 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

15. 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

16. 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.

17. Cash Receipts and Payments Journal
Enter in the Receipt or Payment
Enter in the Explanation

18. 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

19. 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 3
29-Oct
450 4 5

20. 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.

21. Payroll Register

22. 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