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Accounts Payable Process Credits to Abdul Khaliq, follow him for more practical finance content. Here's the original post ----- Accounts Payable Process Receiving Invoices to Releasing Payment I always remember that I started my finance and accounting career as an Accountant Payables. Looking back keeps me humble and grounded. Performing that role allowed me to acquire valuable knowledge and experience. The knowledge that time laid the groundwork for many years to come. If you are an accountant payables, always remember that your job is not merely accounting. You are the gatekeeper of every expense paid in the company. Your role is significant, from receiving and validating invoices to accurate expense coding to ensuring the correctness of every cent paid. - If you do not validate the invoices/POs/GRN, items that were never received may be paid. - If you misallocate a GL code, your financial reporting will be inaccurate. - If you pay the incorrect amount, that's a potential loss to the company. Now you know how significant your role is. Broadly, this is what your role entails: 1. Invoice Receipt - Accounts Payable (AP) accountants are responsible for receiving vendor invoices. 2. The Digital Age - Embrace the digital age by implementing the process of document scanning and digitization of invoices. 3. Primary Responsibility - It is the primary responsibility of AP Accountants to validate invoices thoroughly. 4. Invoices Validation - Develop a keen eye for identifying discrepancies or errors in invoices. - It prevents financial discrepancies and potential disputes 5. Three-Way Matching - The three-way matching is a best practice in AP. - Cross-referencing the invoice with the purchase order and receiving report. 6. Understanding Coding - AP accountants must understand the intricacies of expense coding and account allocation. 7. Expense Allocation - AP accountants must correctly assign expenses to the relevant departments or accounts within the organization. 8. Organizational Priorities - Approval hierarchies involving various stakeholders, such as department heads, managers, and finance. 9. Approval Workflow - Learn strategies for optimizing the approval workflow by setting deadlines and communicating efficiently with approvers. 10. Payment Terms - Prepare payments based on the approved invoices and payment terms agreed with the vendor. 11. Payment Methods - Payments can be made through various methods, such as checks, electronic funds transfers (EFT), or credit cards. 12. Segregation of Duties - It is crucial to segregate the invoice and payment processing to avoid errors and fraud. What else can you add? ---- Follow our page Accounting ABCs to learn more about the fundamentals of Accounting

To record AR : Accounts receivable (AR) bookkeeping is a critical aspect of financial management for any business. It involves tracking money owed to the business by its customers for goods or services provided on credit. Here is an overview of the accounts receivable bookkeeping process: 1. Issuing Invoices: Generate Invoice: Create an invoice for goods or services rendered. This should include details such as the date, invoice number, customer details, description of goods/services, amount due, payment terms, and due date. Send Invoice: Send the invoice to the customer through email, mail, or any agreed-upon method. 2. Recording Transactions: Record Invoice: Enter the invoice details into the accounting system. This entry debits Accounts Receivable and credits the appropriate revenue account. Example Entry: Debit: Accounts Receivable (for the amount of the invoice) Credit: Revenue (for the same amount) 3. Monitoring Receivables: Aging Report: Regularly generate accounts receivable aging reports to track the status of outstanding invoices. This report categorizes receivables based on the length of time they have been outstanding (e.g., 30 days, 60 days, 90 days). Follow-Up: Follow up with customers on overdue invoices through reminders, phone calls, or collection letter. 4. Receiving Payments: Record Payment: When a customer makes a payment, record it in the accounting system. This entry credits Accounts Receivable and debits the Cash or Bank account. Example Entry: Debit: Cash/Bank (for the amount received) Credit: Accounts Receivable (for the same amount) Apply Payment: Apply the payment to the specific invoice(s) to update the customer's account and reduce the outstanding balance. 5. Reconciling Accounts: Bank Reconciliation: Regularly reconcile the bank statements with the recorded transactions to ensure all payments have been correctly recorded. Customer Reconciliation: Periodically reconcile customer statements to ensure that the balances in your records match the balances in your customers' records. 6. Adjusting Entries: Bad Debts: If a receivable becomes uncollectible, write it off as a bad debt. This entry debits Bad Debt Expense and credits Accounts Receivable. 7. Reporting: Financial Statements: Include the accounts receivable balance in the balance sheet under current assets. The income statement will reflect any bad debt expense recorded. 8. Documentation and Compliance: Maintain Records: Keep all documentation related to accounts receivable, including invoices, payment records, and communication with customers. Compliance: Ensure compliance with accounting standards and tax regulations regarding revenue recognition and receivables management. #Accounting ## Bookkeeping ### Data Analyst##Bank reconcilition###GSt##HSt##QSt### IFRS### GAAP###

Accounts receivable (AR) bookkeeping is a critical aspect of financial management for any business. It involves tracking money owed to the business by its customers for goods or services provided on credit. Here is an overview of the accounts receivable bookkeeping process: 1. Issuing Invoices: Generate Invoice: Create an invoice for goods or services rendered. This should include details such as the date, invoice number, customer details, description of goods/services, amount due, payment terms, and due date. Send Invoice: Send the invoice to the customer through email, mail, or any agreed-upon method. 2. Recording Transactions: Record Invoice: Enter the invoice details into the accounting system. This entry debits Accounts Receivable and credits the appropriate revenue account. Example Entry: Debit: Accounts Receivable (for the amount of the invoice) Credit: Revenue (for the same amount) 3. Monitoring Receivables: Aging Report: Regularly generate accounts receivable aging reports to track the status of outstanding invoices. This report categorizes receivables based on the length of time they have been outstanding (e.g., 30 days, 60 days, 90 days). Follow-Up: Follow up with customers on overdue invoices through reminders, phone calls, or collection letter. 4. Receiving Payments: Record Payment: When a customer makes a payment, record it in the accounting system. This entry credits Accounts Receivable and debits the Cash or Bank account. Example Entry: Debit: Cash/Bank (for the amount received) Credit: Accounts Receivable (for the same amount) Apply Payment: Apply the payment to the specific invoice(s) to update the customer's account and reduce the outstanding balance. 5. Reconciling Accounts: Bank Reconciliation: Regularly reconcile the bank statements with the recorded transactions to ensure all payments have been correctly recorded. Customer Reconciliation: Periodically reconcile customer statements to ensure that the balances in your records match the balances in your customers' records. 6. Adjusting Entries: Bad Debts: If a receivable becomes uncollectible, write it off as a bad debt. This entry debits Bad Debt Expense and credits Accounts Receivable. 7. Reporting: Financial Statements: Include the accounts receivable balance in the balance sheet under current assets. The income statement will reflect any bad debt expense recorded. 8. Documentation and Compliance: Maintain Records: Keep all documentation related to accounts receivable, including invoices, payment records, and communication with customers. Compliance: Ensure compliance with accounting standards and tax regulations regarding revenue recognition and receivables management. #Accounting ## Bookkeeping ### Data Analyst##Bank reconcilition###GSt##HSt##QSt### IFRS### GAAP###

🚀 Head into the wonderful world of accounts payable! Whether you're buried under an avalanche of bills or just looking to streamline your process, we've got you covered. From understanding the basics to leveraging the latest tech tools, this post will help you transform your AP process. Ready to make bill payments a breeze? Check out the full blog now! https://lnkd.in/ggQSF-7G ❓ Question for you: What’s your biggest challenge with managing accounts payable, and which tool has made a difference for you?

“What’s the optimal financial stack for my ecom brand as I scale?” Financial Stack for 3 Stages of Growth: 1. $0 - $2M Annual Revenue: - Financial operations done by founders - Full bookkeeping service done by Finaloop - Tax services done by Finaloop or external CPA - Strategic finance done by founders 2. $2M - $30M Annual Revenue: - Financial operations done by VA or part-time bookkeeper - Full bookkeeping service done by Finaloop - Tax services done by Finaloop or external CPA - Strategic Finance done by Fractional CFO 3. $30M+ Annual Revenue - Financial operations done by internal bookkeeper, VP Finance, or CFO - Full bookkeeping service done by Finaloop - Tax services done by Finaloop or external CPA - Strategic finance done by internal CFO or VP Finance - - Financial operations includes: - Updating landed cost per SKU - Adding vendor bills to bill. com, Settle, or Finaloop - Creating B2B invoices in Shopify, Paypal, Stripe, or directly in Finaloop Finaloop bookkeeping services includes: - Real-time P&L, Balance Sheet, Cash Flow & inventory cost accounting - 24/7 data sync from your apps - All-in-one financial dashboard - Full bookkeeping team - Ecommerce finance expert support Tax services includes: - Federal income tax returns - State income tax return(s) - Form 1099s - Tax deduction optimization Strategic finance includes: - FP&A services - Budgeting - Forecasting & scenario planning - Cash flow management - Pricing strategy - Fundraising & capital structure If you’re curious about the optimal financial stack for your business, shoot me a DM!

I can give you the Professional service as follows: Service Details: · Company Setting in QBO, XERO, WAVE. · Chart of Accounts. · Cleanup & Catchup of messy Bank transactions. · Creating invoices & Bill. · Manual & Adjusting journal entries. · Maintaining Account Receivables & Payable. · Bank Reconciliation. · Financial Statement, Income statement and Cash flow. · Credit Card, PayPal, Stripe transaction Record and Categories. Why I am your best choice for hire me: · 100% Priority on Data Security & Confidentiality. · Quick and smooth communication. · On-time delivery with 100% accuracy #accounting #business #accountant #finance #tax #bookkeeping #taxes  #smallbusiness #cpa #entrepreneur #payroll #catchup #taxseason  #accountingservices #accountants #businessowner #money #audit #incometax #accountingsoftware #management #marketing #startup #taxconsultant #cloudAccountant #bookkeeper #accountinglife #motivation #accountant #wave  #bookkeeper #cloudaccounting #newtonbpo  #bookkeeperusa #bookkeeping #xero

Tips from a CPA on effective invoicing - James Barr, a certified public accountant, shares his top tips to get the basics right on your invoices. We see time and again how simple steps can go a long way when it comes to getting paid on time. #invoicing #ARAutomation #accounting #creditcontrol #accountsreceivable #payments #business https://bit.ly/4aCKpyC

Accounts Payable Process Receiving Invoices to Releasing Payment Accounts Payable is close to my heart. I started my finance and accounting career as an AP Accountant. Probably that's why the first course I developed was on "A Practical Approach to Managing Accounts Payable." Performing that role allowed me to acquire valuable knowledge and experience. The knowledge acquired at that time laid the groundwork for many years to come. If you are an accountant payables, always remember that your job is not merely accounting. You are the gatekeeper of every expense paid in the company. Your role is significant, from receiving and validating invoices to accurate expense coding to ensuring the correctness of every cent paid. - If you do not do three-way matching, never received items may be paid. - Your financial reporting will be inaccurate if you misallocate a GL code. - If you pay the incorrect amount, that's a potential loss to the company. Now you know how significant your role is. Broadly, this is what your role entails: 1. Invoice Receipt • Accounts Payable (AP) accountants are responsible for receiving vendor invoices. 2. The Digital Age • Embrace the digital age by implementing the process of document scanning and digitization of invoices. 3. Primary Responsibility • It is the primary responsibility of AP Accountants to validate invoices thoroughly. 4. Invoices Validation • Develop a keen eye for identifying discrepancies or errors in invoices. • It prevents financial discrepancies and potential disputes 5. Three-Way Matching • The three-way matching is a best practice in AP. • Cross-referencing the invoice with the purchase order and receiving report. 6. Understanding Coding • AP accountants must understand the intricacies of expense coding and account allocation. 7. Expense Allocation • AP accountants must correctly assign expenses to the relevant departments or accounts within the organization. 8. Organizational Priorities • Approval hierarchies involving various stakeholders, such as department heads, managers, and finance. 9. Approval Workflow • Learn strategies for optimizing the approval workflow by setting deadlines and communicating efficiently with approvers. 10. Payment Terms • Prepare payments based on the approved invoices and payment terms agreed with the vendor. 11. Payment Methods • Payments can be made through various methods, such as checks, electronic funds transfers (EFT), or credit cards. 12. Segregation of Duties • It is crucial to segregate the invoice and payment processing to avoid errors and fraud. What else can you add? 💡 𝘛𝘩𝘪𝘴 𝘪𝘴 𝘱𝘢𝘳𝘵 𝘰𝘧 𝘵𝘩𝘦 "𝘗𝘳𝘢𝘤𝘵𝘪𝘤𝘢𝘭 𝘈𝘱𝘱𝘳𝘰𝘢𝘤𝘩 𝘵𝘰 𝘈𝘤𝘤𝘰𝘶𝘯𝘵𝘴 𝘗𝘢𝘺𝘢𝘣𝘭𝘦" 𝘤𝘰𝘶𝘳𝘴𝘦. #MAKAlpha #TheFinanceMasterclass coming soon! ------------------------------------------ - Follow Abdul Khaliq + 🔔 - Sharing the essence of 20+ years of journey. - You can download all my work in PDF format by visiting my profile.

Tips from a CPA on effective invoicing - James Barr, a certified public accountant, shares his top tips to get the basics right on your invoices. We see time and again how simple steps can go a long way when it comes to getting paid on time. #invoicing #ARAutomation #accounting #creditcontrol #accountsreceivable #payments #business https://bit.ly/3xBxPRv

Tips from a CPA on effective invoicing - James Barr, a certified public accountant, shares his top tips to get the basics right on your invoices. We see time and again how simple steps can go a long way when it comes to getting paid on time. #invoicing #ARAutomation #accounting #creditcontrol #accountsreceivable #payments #business https://bit.ly/48c6SR2