ABC Company

Accounting Manual

Accounts Receivable

Creating Invoices

○     Team Member Responsibilities:

○      Fill out the required information in the AR Processing Log in the current month’s tab. See the first tab of the log for instructions.

○      For new clients, enter the client's contact information into the ‘New Client Information’ tab.

○      It is the responsibility of the requestor to ensure this form is complete and accurate and entered into the related project P&L.

○      Accounting will check the AR Processing Log on Mondays and Thursdays and process all new invoice requests according to the dates specified in the notes. If you need an invoice sent out on a day other than Mondays or Thursdays, please email books@abccompany.com.

○      Accounting will create the invoice, cc the requester, and send to the client via QuickBooks unless the notes specify otherwise.

○      Accounting will enter the invoice number, date invoice was sent to the client, and the date payment is received from the client in the grey columns of the AR Processing Log.

○      When an invoice is 7 days late, follow up with the client every two weeks until the invoice is paid.

○      When an invoice is 30 days late:

○      A finance charge can be applied to the invoice at this point.

○      Accounting will send a reminder to the client from QuickBooks.

○      When an invoice is 60 days late:

○      Repeat the 30 days late process.

○      Discuss bringing collections into the picture with accounting.

○      AR Aging Update

○      Every week on Mondays, accounting will apply new payments received against relevant open invoices, update the AR Processing Log, and update and send the AR Aging Report to management with all changes that occurred from the prior week.

Receiving Payments

○      Checks

○      Management will deposit checks, and accounting will mark invoices paid in QuickBooks and update the AR Processing Log and AR Aging Report on Mondays for the previous week’s deposits.

○      Credit Cards and ACH

○      Clients can pay their invoices by ACH or credit card using the QuickBooks payment links. Payments received throughout the week will be applied to open invoices on Mondays when the AR Processing Log and AR Aging Report are updated.

○      Update your spreadsheet when invoices are paid.

○      Email books@abccompany.com if you need to check on invoice payments on days other than Mondays.

Accounts Payable

Paying Bills

○      Team Member Responsibilities:

○      Fill out the required information in the AP Processing Log. See the first tab of the log for instructions.

○      For new vendors, enter the vendor's contact information into the ‘New Vendor Information’ tab, request a completed W-9 form, and upload form to this folder.

○      W-9 forms should be collected from all new independent contractors and most new vendors prior to processing payments. We do not need W-9 forms from vendors that are corporations (C-Corp or S-Corp). If you are unsure of the business' entity type, request a W-9 form to be sure.

○      Reference the ABC Company Expense Account List and ABC Company Project List when entering account and project information on the check request form.

○      Billable Expenses | Expense Banks

○      All expenses related to a project should be tagged to the appropriate client and project and marked “billable” if the expense will be paid for by the funds from the project’s expense bank.

○      Expenses that are related to a project but are not paid for by the project’s expense bank funds and are covered by ABC Company should still be tagged to the project but not marked “billable.”

○      Billable expenses only apply to events with clients.

○      As a general rule, all vendor bills should be submitted for payment via the AP Processing Log. However, recurring charges on autopay or expenses that need to be paid on the spot (i.e. subscriptions, meals and entertainment, deposits or payments that require upfront payment by the vendor) can be paid for by credit card. 

○      Bills paid for by credit card to not need to be entered into the AP Processing Log but be sure to attach a copy of the bill or receipt (and/or any supporting documents) to the expense in Expensify.

○      Accounting will check the AP Processing Log on Mondays and Thursdays and process all new bill requests according to the dates specified in the notes. If you need a payment sent out on a day other than Mondays or Thursdays, please email books@abccompany.com.

○      Bills processed through BILL:

○      To set up a new vendor, BILL requires the vendor’s name, mailing address, and email address. Enter this information in the ‘New Vendor Information’ tab of the AP Processing Log for all new vendors.

○      Once a new vendor is added to BILL, they will be sent a link to securely sign up for ePayments (direct bank transfers). If the vendor chooses not to sign up for ePayments, they will automatically be paid by check.

○      All bills will be routed to management for approval prior to payment processing. Bills will be approved on the weekly accounting call and approved payments will be sent out on Mondays.

○      Please allow up to 10 days for bills to be paid. If payment needs to go out sooner, email books@abccompany.com.

○      BILL ePayment setup for contractors and vendors:

○      The ePayment invitation from BILL requests information from the receiver to verify their identity to prevent fraud and ensure payment goes to the correct account.

○      If a contractor does not have an employer identification number (EIN), they can enter their social security number instead. This is the number associated with any income received by a contractor (or vendor) and the EIN/SSN is how the IRS identifies the taxpayer.

○      Contractors (and vendors) are not required to submit bills directly through BILL. They can submit as they normally would, and accounting will route the bills through BILL for payment through the AP Processing Log.

○      Contractors (and vendors) are not required to set up ePayments. If they do not enter their bank information, BILL will mail them a paper check.

○      Contractors (and vendors) who already have a BILL account can provide us with their BILL Payment Network ID (Network > My Network Profile > Payment Network ID) and accounting can use this to connect to the vendor’s account. In this case the vendor would not need to complete ePayment setup.

○      Questions and issues with setup can be forwarded to books@abccompany.com. Certain technical support inquiries will need to be forwarded to the BILL tech support team by accounting. Accounting is unable to contact BILL tech support on behalf of a vendor due to the confidential financial information contained in vendor accounts.

Credit Card Expenses

A company credit card is a privilege. Please review and familiarize yourself with the ABC Company Business Expense Policy, which applies to company credit card expenses along with expense report reimbursements.

○      Company credit card expenses are processed through Expensify. Include the following information in Expensify with each expense:

○      Itemized bill or receipt

○      Description of expense | business purpose

○      Relevant expense account and project. Reference the ABC Company Expense Account List and ABC Company Project List when entering account and project information in Expensify. Indicate “HQ - Internal” for internal ABC Company expenses.

○      All credit card transactions must be routed for approval by management and/or accounting within Expensify.

○      All credit card transactions for the month must be submitted for approval in Expensify by the third business day following the end of the month. Approvers must approve all pending transactions in Expensify by the fifth business day following the end of the month.

○      Notify accounting if personal transactions are accidentally charged to your company credit card account to make reimbursement arrangements.