Non-Purchase Order Bookkeeping Process
We are advocates of a purchase order driven accounting system, however not all builders chose to utilize PO’s for reasons that make perfect sense to their business model. Below is an overview of a typical weekly invoice-payment cycle using our bookkeeping process for a Non-Purchase Order job cost accounting system.
Step 1: Invoices received
Vendors email invoices, insurance certificates, credit memos, and statements to Invoices@yourcompany. Invoices that are mailed to your office or received in the field are scanned and emailed to Invoices@yourcompany.
Benefits: This provides a complete history of all invoices searchable by vendor, because as vendors email in their invoices they are automatically tagged to that vendor’s history folder. Invoice Email History organized by vendor, searchable by date, in the cloud, secure and yet available from any remote location. This provides BI staff and your staff convenient access to invoices attached to email.
Step 2: Invoices checked for duplicates
We check each invoice and verify that the document has the job number, job address or job name. We also check for duplicate invoices that are already paid or received and pending payment.
Benefits: This saves you time at step #5, because you only review complete invoices, without wasting time reviewing the same invoice two or more times.
Step 3: Split and save as pdf
When two or more invoices are emailed as a single scanned document, we separate them into individual invoices.
Benefits: This allows us to handle each digital invoice individually, stored in a separate job folder, processed separately, approved and paid separately when necessary.
Step 4: Invoices Sorted to Job Folders
We sort individual invoices into job folders and place on your private secure cloud.
Benefits: This allows you to review invoices by job and also provides a digital archive of all invoices organized by job and available at any time from any location. You can also provide limited access to a customer for their review and approval an important feature for Cost-Plus builders.
Step 5: Coding and approval
You code and approve your invoices in the cloud. Job reports are always available throughout the process so you can review cost to date by cost code prior to approving further invoices.
Benefits: You can review, code, and comment on your invoices at your convenience from any location. If customer approval is necessary, your customers can also have view and comment access to their invoices prior to payment approval.
Step 6: Entering to accounting
After your coding our bookkeepers enter invoices into the accounting system.
Benefits: Our process includes multiple validation steps to insure accuracy. We process by job comparing invoice amounts to job budgets and available budget balances. We also double check invoice totals via hash total verification. Vendor insurance expirations are flagged by our system at this stage.
Step 7: Posting to accounting
Once AP entry is complete, we have a second review by a bookkeeping supervisor to revalidate hash totals and coding prior to posting.
Benefits: Our review process insures your financial and job cost reporting is free from errors. We pride ourselves in accounting accuracy.
Step 8: Check run setup
We provide AP Open Item reports, job reports, and check proofing reports prior to the check printing day, just in case you have a few changes.
Benefits: The convenience to review check proofing reports, job reports, AP Open Item reports, and cash availability prior to your scheduled check printing session.
Step 9: Printing checks in your office
Place the check stock in your printer and verify the starting check number. Our system prints directly to your office. You can make some last minute changes here if necessary and add or remove a few invoices prior to the check run.
Benefits: You have the peace of mind that comes with controlling ALL of your payment activity.
Other Bookkeeping Services
In addition to processing Weekly or Bi-Weekly check runs, our basic bookkeeping services also include the following;
- Full construction accounting services; HUD closing entries, journal entries, deposits and interest transactions, credit card and electronic transactions, bank reconciliations, fixed asset depreciation, financial statements
- Digital archiving of all vendor and subcontractor invoices, insurance certificates, and other correspondence
- Updating Gemini job cost accounting with insurance certificate expiration dates
- Reconciliation of vendor and subcontractor monthly statements
- Direct contact with vendors and subcontractors to reconcile outstanding invoices, credit memos, insurance certificates, and other accounting based documents
- Monthly reconciliation of bank accounts
- Initiating new vendor sign ups, including the development, distribution and receipt of vendor packets, and required vendor agreements
- Maintenance of vendor changes in the Prosoft system (addresses, contact info)
- Weekly payroll entries
- Payroll tax deposit and reporting
- Annual W2-W3 processing
- Annual preparation of documents required for your tax accountant
- 1099 printing and mailing