Accounts Payable and creating checks is pretty much the same for each client. We receive vendor invoices from our client, we enter into our system as accounts payable and then pay when due. Some invoices require job costing, some need inventory tracking, and others are simply posted to the books as an expense.
Our clients review and approve vendor invoices before they send them to us. In some cases clients are creating Purchase Orders, which they give to us, so we check the invoice against the PO rather than having the client approve it. Prior to data entry all vendor invoices are coded to determine how they should be posted. We code the invoices based on our knowledge of the client and years of bookkeeping experience. We do occasionally call clients if we are unsure how to code.
As invoices are coded, we also review them just as another double check. Once coded, vendor invoices are posted to the system, stamped as posted and then filed in that client’s “Pending File” with other open items. Invoices are paid prior to their due date, based on the specific terms with the vendor.
Checks are processed periodically, based on the schedule that we have established with our client. Prior to signing, our client has an opportunity to review again what is being paid. After signature, checks are placed in window envelopes and mailed out.