Office Procedures

Coding Stamps

the accounting system operates by means of code numbers. All timesheets, checks, etc. must be coded before they can be entered into the computer. Many companies use a coding stamp to speed the coding of A/P Invoices. Whether or not a coding stamp is used, the operator will need to be sure that time is allotted for someone to code and verify coding on internal documents.

Tracking Entries

When continually entering large amounts of data over a period of time, it is very easy to lose track of what has been entered into the computer and what has not. Therefore, several stamps to specify the status of every document are needed (i.e. Received and Date, Entered and Date, etc.). It is important to be very conscientious about marking every item as it is entered.

Supporting Documents

Everything entered into the computer should have a corresponding source (paper) document to support it. For the most part, these documents will be time cards and invoices. For subcontractor payments, we suggest preparing personal subcontractor payment vouchers rather than depending on invoices from a subcontractor. Likewise, when entering items into the General Ledger, if there is no source document, a Journal Voucher should be prepared which explains the journal entry.

It is important that the flow of papers into the office, into the computer, and into the appropriate files be as smooth as possible. To prevent work from piling up, we suggest that timesheets be mailed in and coded daily, and that invoices be coded as they arrive and are approved for payment.

A hanging file system is excellent for filing computer printouts. These roll-around files provide easy access to folders. Each type of permanent report should have its own computer printout folder. Whenever a report is produced, it should be added to the permanent folder and kept. We strongly recommend obtaining a fire-proof vault and/or safe deposit box in which to keep the company’s accounting information. For convenience, backup disks may be stored in the vault rather than a large accumulation of printed reports.

Other supplies needed include toner cartridges or printer ribbons, boxes of computer paper and diskettes.

Some General Principles

1.1.Back up data files religiously. It is much better than buying insurance. Be able to restore from any of several back-up sets. Always back up before posting and after a significant amount of data entry. It maybe desirable to back up before printing checks. System maintenance does not include helping recover from an error which could have been solved by restoring a back-up that should have been made but was not.

 This question may come up," Why are backups necessary all the time?" The answer is that the accounting system runs on computer hardware. When the accounting system is making the most critical calculations and postings, it is using the hardware and operating system software to its maximum capacity. Several files may be open and several programs may be in progress simultaneously. On top of that, the program is constantly reading from and writing to the hard disk drive as well. When is something going to go wrong? Right in the middle of all this computer work! That’s why it is necessary to back up so often. It is the wise thing to do.

2.Keep a log book of actual back-ups. Also, record in that log book what was done on the system, who did it, and when.

3.Be sure that the electrical power is clean and stable. It is very difficult to find the cause of data problems which were in fact due to poor electrical power. Install a UPS (Uninterruptible Power Supply) device on any computer that will run the accounting system.

4.Beware of using a ‘Warm Boot’ (Ctrl-Alt-Delete) to get out of a problem in the system. After talking with Technical Support personnel about the problem, we may have the operator do this. But in many cases this ‘solution’ is worse than the problem itself.

5.Data entry may not be safely saved to the hard disk drive until the program has returned to the main screen.

6.Once the posting or check-writing process has begun, don’t assume it is done until the system has returned to the entry screen.

7.Although many of these files can be accessed on-screen, it may be wished to print listings of the following to keep next to the computer for quick reference:

oGeneral Ledger account numbers.

oThe cost code dictionary.

oJob numbers, the valid cost code, cost type, and group code combinations for each job.

oP/R employee numbers.

oA/P vendor numbers.

oA/R customer numbers.
 

8.8.After the activity for a month has been entered into the system, run the following monthly reports:

oGeneral Ledger Transaction Listing for that month

oGeneral Ledger Detail Listing

oTrial Balance

oJob Cost Detail Listing for that month

Also, check that each module reconciles to the General Ledger by doing the following:

oCompare the Job Cost total with the total of the job cost control accounts in the General Ledger.

oCompare the total of open invoices in the Accounts Payable module with the sum of the Accounts Payable and Subcontracts Payable accounts in the General Ledger.

oCompare the total of open billings in the Accounts Receivable module with the balance of the Accounts Receivable account in the General Ledger.

If a discrepancy is found, get it resolved as soon as possible.

9.Do the periodic data-clearing functions in Payroll when required (at the end of each year).

10.Check the G/L Summary Listing from each posting report to make sure the final running balance is zero.

11.If the accounting system is run as a multi-user system, do not back up until all users are completely logged out of the company being backed up. Otherwise, whatever files are being used will not be backed up. When this is the case, if the backup is restored, files will not be properly linked together and it will be a mess that even Technical Support cannot promise to fix.