Saturday, March 21, 2009

Let's Get Organized - Accounts Payable

Accounts Payable aka Vendor Bills
  1. When bills come in the mail, code them with the job and code (roofing, siding, etc) and enter them daily into your accounting software as an accounts payable bill.
  2. File them in an A-Z accordion folder that is labeled "Accounts Payable or Bills to Pay".
  3. Twice a month (weekly or monthly) when it's time to pay bills, print an open payables report to choose what you want to pay, pull the bills from your blue accordion folder and select the bills in your software to be printed.
  4. Print checks using three part checks (body, stub, stub or similar). After checks are printed, use window envelopes to mail the checks to the vendor.
  5. Staple the bottom stub from each check you printed to the group of bills they are paying.
  6. File each vendors paid bills (with check stub attached) in the appropriate "paid bill file folder" (see below).

This may be contrary to what many contractors want to do, but something I highly recommend. Job reports can be printed for the job file showing all job costs including paid and unpaid bills and more. By stapling all bills together with the check stub, they are all in one place and you can always go to the same location to find them. Waivers if printed with the bills can be filed in the job folder, or even in the paid bill folder. You will know where to get them if you need them, many times, you won't need them unless liens are filed. At the end of the year, the paid Bills folders can be stored away and new file folders created for the new year.

File paid bills in file folders labeled for each letter and/or for your major vendors:

"ABC Electric, Paid 2009"
"A-Misc, Paid 2009"
"B-Misc, Paid 2009"

Email if you would like a word document ready for printing onto labels of your "Alpha- Misc Paid 2009" file folders.

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