ACCOUNTING DEPARTMENT WORKFLOW

ACCOUNTING
DEPARTMENT
WORKFLOW


Binders Needed:
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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).

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.

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

The Accounting Department creates an
INVOICE.

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


Order
Form


Sales Journal

DATE

CUSTOMER

Sale to
Lizzie
Grubman

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
Customer:

DATE
1

Lizzie Grubman

INVOICE #
23-Oct

Balance for
Lizzie
Grubman

INVOICE
AMOUNT
532.26

AMOUNT PAID

INVOICE BALANCE
532.26

2

532.26

3

532.26


Accounts Receivable
Controlling Record

DATE

CUSTOMER

Balance for
Lizzie
Grubman

BALANCE

1

Lizzie Grubman

532.26

2

Johnny Damon

1145.99

3


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 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

VEC Trading

lamps

825

3

29-Oct

VEC Trading

lamps

450

4


Accounts Payable Record
Vendor Name:

One
purchase

VEC Trading

DATE

INVOICE #

INVOICE AMOUNT

AMOUNT PAID

Total Amt.

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


Accounts Payable
Controlling Record

DATE

1

2

3

4

VENDOR

VEC Trading

Total Amt.

BALANCE

2000.00


Inventory Record
Item Name:

Budget lamps

Item #:

Minimum:

Description:

Maximum:

Purchased
Date
21-Oct

Unit

Cost

Units
10

23-Oct
25-Oct

10

27-Oct
29-Oct

10

6

10

200

200

17

Balance
Cost of
Goods Sold

100

0
20

Unit
Cost

Units

0
20

Total Units
on Hand

Sold
Total

10

Value of
Inventory on
Hand

Inventory
Level

10

Unit

Cost

Units

Total

0

10

100

60

4

40

0

24

240

170

7

70

0

27

270


Inventory Record
Item Name:

Standard Lamps

Item #:

Minimum:

Description:

Maximum:

Purchased
Date
21-Oct

Unit
Cost

Units
10

23-Oct
25-Oct

25

27-Oct
29-Oct

25

4

25

250

250

8

Balance
Cost of
Goods Sold

250

0
10

Unit

Cost

Units

0
10

Total Units
on Hand

Sold
Total

25

Value of
Inventory on
Hand

Inventory
Level

25

Unit
Cost

Units

Total

0

10

250

100

6

150

0

16

400

200

8

200

0

18

450

Inventory Control

DATE

ITEM NAME

ITEM #

Quantity of
Inventory on
Hand linked
from
Individual
Records

QUANTITY ON
HAND

COST

Value of
Inventory on
Hand linked
from
Individual
Records

TOTAL

1

Budget lamps

27

270

2

Standard Lamps

18

450

3

Deluxe lamps

7

525

4
5
6

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.

REF.
#
DATE
DESCRIPTION
CASH
CASH
RECEIPT PAYMENT BALANCE

0
0
0

AR CE -C O U N T S
C E I V A B LE
AP AC YC AO BU LEN T S
S A LA R I E S
PW AI TY HR -O LL
HP AO YLDR OI N LLG S
TE AX XP E N S E
RENT
U T IL IT IE S
401(E X P KE )N S E
IEN X T PE ER N E SS ET
OTHER

Cash Receipts and
Payments Journal
Enter in the
Receipt or
Payment

Enter in the
Explanation

EXPLANATION


Accounts Receivable Record
Enter in
payment
received

Customer:

DATE
1

Lizzie Grubman

INVOICE #
23-Oct

INVOICE
AMOUNT
532.26

AMOUNT PAID

INVOICE BALANCE
532.26

2

532.26

3

532.26


Accounts Payable Record
Vendor Name:

Enter in
amount
paid

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

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 Bank Manager pays each
employee.

Note: Payroll is completed twice a month.

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.


Payroll Register

Firm Name
Semimonthly Payroll Register
Pay Period: From_________________ To _____________________

NAME
1
2
3
4

# of W-4
HOURLY
SOCIAL MEDIexemptions HOURS RATE GROSS SECURITY CARE
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Taxable
Fed.
Income
0.00
0.00
0.00
0.00

FWT
FALSE
FALSE
FALSE
FALSE

SWT
FALSE
FALSE
FALSE
FALSE

TOTAL DE401 (K) DUCTIONS NET PAY
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00


SUMMARY
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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.
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941 – monthly
Sales tax – quarterly
W2 and W3 – yearly
1040 individual tax return – yearly
1120 Corporate tax return – yearly