HOW TO SET UP BASIC

ACCOUNTING PROCEEDURES


It is very important that there is uniformity in your accounting procedures to ensure the integrity of your books and records,avoid duplication of work and effort and allow us to provide timely financial reports on a consistent basis.Turnover of officers and accounting personnel should not cause a disruption in the accounting process.  The system should stand on its own meaning that it should be simple, well documented and easy enough to understand that a layperson could work with it. The information that we need as your accountants is really quite simple and consistent. I will sum it up as follows:

Any money received and/or disbursed needs to be documented and the information conveyed to us.

 

The information we need includes the following:

1: The date it transpired
2: Who it was paid to (Checks) or where it came from (Deposits) (PAYEE/SOURCE)
3: What it was for (CATEGORY)

How you provide this information to us is as follows:

1: Check stubs-every check written has to have this information on the check stub:

A: Date
B: Payee
C: Category

We will provide you with a list of categories to follow. We call this a Chart of Accounts. Every check has to fall under one of these categories. If a check is for more than one category, IE reimbursement for office supplies, travel and printing you will list each category on the check stub with its corresponding
amount. The total has to add up to the check total. If the category is not listed you can use account a "suspense account" untill it is clarified. A clear description of what the check was for is a tremendous help.

2: Electronic payments- these are the same as checks except for the fact that there is no actual paper check.

This poses a problem because the individual remitting payment does not have to write anything out. There is a chance entering this info in the checkbook can be overlooked. In order to reduce these kinds of oversights you should create a LIST OF ELECTRONIC PAYMENTS to document those payments. This does not replace the requirement of entering the information in the checkbook.

3: Deposits- Every deposit slip has to include the source, date and amount.

All deposits will be entered in the LIST OF DEPOSITS we have designed for you. The deposit has to be entered in the check book and the as well which should include the same information that is on the deposit slip. A: Date B: Source C: Amount If there are multiple sources on one deposit slip make sure you note each one separately.

Please keep in mind that your internal procedures may require additional steps and internal controls that is beyond the scope of our this article. You should have in place policies and procedures that comply with IRS and NYS record keeping requirements.