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
You receive a PURCHASE ORDER or an
JOURNAL, ACCOUNTS RECEIVABLE
ORDER FORM (through your website,
RECORD and the INVENTORY
mail, or fax).
RECORDS.

Staple the PURCHASE ORDER/ORDER

FORM and INVOICE together and file in a The Accounting Department creates an
binder in numerical order by Invoice. INVOICE.

Send the Invoice to the customer. Note: Review the Invoice binder periodically
Order INVENTORY when needed. 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

5
Accounts Receivable Record Balance for
Lizzie
Grubman

Customer: Lizzie Grubman

INVOICE
DATE INVOICE # AMOUNT AMOUNT PAID INVOICE BALANCE

1 23-Oct 532.26 532.26

2 532.26

3 532.26
Accounts Receivable Balance for

Controlling Record
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
Your company completes a PURCHASE information in the PURCHASES
ORDER from another company and sends it JOURNAL, ACCOUNTS PAYABLE
out. Keep a file copy in the PURCHASES RECORD, AND ACCOUNTS PAYABLE
binder. 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
Total Amt.
One
Vendor Name: VEC Trading
purchase

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
Accounts Payable
Controlling Record Total Amt.

DATE VENDOR BALANCE

1 VEC Trading 2000.00

4
Inventory Record Value of
Inventory
Item Name: Budget lamps Level Inventory on
Hand
Item #: Minimum:

Description: Maximum: Total Units

on Hand

Purchased Sold Balance

Unit Unit Cost of Unit

Date Units Cost Total Units Cost Goods Sold Units Cost Total
21-Oct 10 10 100 0 10 100
23-Oct 0 6 10 60 4 40
25-Oct 20 10 200 0 24 240
27-Oct 0 17 10 170 7 70
29-Oct 20 10 200 0 27 270
Inventory Record Value of
Inventory
Item Name: Standard Lamps Level Inventory on
Hand

Item #: Minimum:

Total Units
Description: Maximum:
on Hand

Purchased Sold Balance

Unit Unit Cost of Unit

Date Units Cost Total Units Cost Goods Sold Units Cost Total
21-Oct 10 25 250 0 10 250
23-Oct 0 4 25 100 6 150
25-Oct 10 25 250 0 16 400
27-Oct 0 8 25 200 8 200
29-Oct 10 25 250 0 18 450
 Value of

Inventory Control Quantity of

Inventory on
Inventory on
Hand linked
from
Hand linked Individual
from Records
Individual
Records

QUANTITY ON
DATE ITEM NAME ITEM # HAND COST TOTAL

1 Budget lamps 27 270

2 Standard Lamps 18 450

3 Deluxe lamps 7 525

6
RECORDING CASH RECEIPTS
AND PAYMENTS The Accounting Department
Each week the Bank Manager records ALL transactions in the
prints out a copy of the current CASH RECEIPTS AND
bank transactions. PAYMENTS JOURNAL in the
appropriate places (as payments
or receipts of cash and an
explanation).

If one of the invoices that you Any invoices that your company
sent out has been paid, retrieve paid another company (because
the invoice from the binder, you purchased something from
mark it paid, and file it. Update them) is updated in the
the ACCOUNTS ACCOUNTS PAYABLE
RECEIVABLE RECORD to RECORD.
reflect the payment.
 Cash Receipts and
Payments Journal
Enter in the Enter in the
Receipt or Explanation
Payment

EXPLANATION

ACCOUNTS

ACCOUNTS

HOLDINGS

INTEREST
CEIVABLE

SALARIES

EXPENSE

EXPENSE

EXPENSE
UTILITIES
PAYROLL

PAYROLL
PAYABLE

OTHER
401(K)
WITH-

RENT
REF. CASH CASH

TAX
RE-
# DATE DESCRIPTION RECEIPT PAYMENT BALANCE

0
0
0
Accounts Receivable Record
Enter in
payment
received

Customer: Lizzie Grubman

INVOICE
DATE INVOICE # AMOUNT AMOUNT PAID INVOICE BALANCE

1 23-Oct 532.26 532.26

2 532.26

3 532.26
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 2000.00

5 2000.00
PAYROLL
The Payroll Associate completes
the PAYROLL REGISTER for The Payroll Associate creates
the pay period. The original is and distributes pay stubs.
filed in a binder and a copy is
given to the Bank Manager.

On the 15th of the month, the

The Bank Manager pays each Bank Manager submits and pays
employee. the 941 tax form for the
previous month. All tax forms
are filed in a binder.

Note: Payroll is completed twice a month.

 Payroll Register

Firm Name
Semimonthly Payroll Register
Pay Period: From_________________ To _____________________

Taxable
# of W-4 HOURLY SOCIAL MEDI- Fed. TOTAL DE-
NAME exemptions HOURS RATE GROSS SECURITY CARE Income FWT SWT 401 (K) DUCTIONS NET PAY
1 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.00
2 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.00
3 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.00
4 0.00 0.00 0.00 0.00 FALSE FALSE 0.00 0.00
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