Purchase Orders are
issued to buy products and services. It
is not necessary to keep a paper copy of Purchase Orders unless others in the
company require a copy and do not have access to the Quick Books Company File. Daily Automatic Backup of the Quick Books
Company file is sufficient, otherwise.
When products and
services ordered are delivered, vendors must have the appropriate company
representative sign for those products or services and leave a copy of the
The Cardinal rule for bookkeepers is:
Enter only invoices
Never enter statements
in small business, it is often necessary and advantageous to enter statements
provided a method is followed completely.
that we use is:
As a reference number, use the
coding of the date of the statement plus “ST” when entering a statement (e.g.
6/18/07 would be 061807ST). Attach all invoices included in this
During the entire process of handling documents related to purchases,
staples are not used. Rather very small
binder clips (3/8”) are used to keep multiple page bills,
delivery and credit card receipts together.
Only when the bills and credit card receipts are filed are they stapled
Information from delivery receipts for products is entered into Quick
Books to increase inventory. Company
Bookkeeper(s) stamp “Entered,” and the date of entry of the delivery receipt
(see Rotary Rubber Stamp with Rotary Rubber Stamp Date in List of File Location
Materials below). The delivery receipt
is filed in an A through Z location (by vendor) called “Accounts Payable Entered.” This document will be used when the bill
comes in from the vendor to verify that the bill is actually for the number of
delivery receipts for services is filed in an A through Z location (by vendor)
called “Accounts Payable
To Be Entered.” This document will be used when the bill comes
in from the vendor to verify that the bill is actually for the cost of services
rendered (often by amount of time).
When bills arrive
from vendors, they are immediately filed in an A through Z location (by vendor)
called “Accounts Payable
To Be Entered.” Those for services are matched to paper
delivery receipts for the same purchase order.
Bookkeeper(s) enter bills from the “Accounts Payable To Be Entered” file into Quick Books.
Those for products
are matched to paper delivery receipts for the same purchase order found in “Accounts Payable Entered.”
After entering bills
for products and/or bills for services, all bills, coupled with their matching
delivery receipt(s) are filed in an A through Z location (by vendor) called “Accounts Payable Entered.” Company Bookkeeper(s) stamp “Entered,” and
the date of entry on each of the bills processed.
Bookkeeper(s) issue to management
· Accounts Payable Reports along
· Accounts Receivable Reports,
· Liquid Cash balances,
· Credit card balances and credit
which bills to pay and when to pay them
run checks to pay bills indicated by management to be paid from checking
pay bills indicated by management to be paid by credit card.
· From Vendor website
· Via email
· Via facsimile
· Via Telephone
stamp “Paid,” the date of payment the check number and bank account on each
filed Paid Bills along with accompanying delivery receipts into an A through Z
location called “Paid Bills (By Vendor).” This is the only point where
staples are used to affix delivery receipts to bills and multiple bill pages to
Locations for files
are by personal preference.
· Portable accordion files are
excellent for “Accounts Payable To Be Entered” and for “Accounts Payable
Entered” files, depending on the volume of bills received to be processed
before payment is made.
· File cabinet drawers are better
for “Paid Bills” files as this file grows during the fiscal year.
The future is here: the paperless
bookkeeping system is here. (See Paperless Accounting)