I am a qualified bookkeeper with over 20 years experience. I have just started as Accounts manager with a company. I am trying to streamline the purchase ledger but I am having difficulty changing the system as the Business development manager who introduced the present system (and isn't a bookkeeper) is loathed to change. We use Sage and I have always given all purchase invoices a consequetive number and filed them by this number. When paying the creditors it's a quick process taking everything from Sage.
This company insists on filing unpaid invoices in one file, pulling them out for payment and then filing them in various lever arch files which have to keep being changed as and when files get full. I find this system really time consuming but I am told they have had many double entries. I have explained that if they are matched up correctly with PO or delivery notes this wouldn't happen.
Does anyone else use this system? I'm at my wits end with this.
Hi Bernadette
I hear your frustration! I did have one client who used a box for unpaid and a box for paid invoices....worked ok except at VAT period end when I obviously needed all the invoices for that VAT period. I just made sure he had the information he needed to be able to know what was still unpaid despite not having the paperwork - I worked remotely so that was initially seen as a potential issue, although we got to a workable solution very quickly.
I think the way to persuade them round to your system perhaps would be to provide them with enough reports on a regular basis to see what it outstanding and when it needs paying. Ive just taken on one client who pays just from statements received but then when I stuck a demand for payment for his business rates under his nose as it was about to go to collections he wondered why he didnt know about it. Lets face it the local councils and other parties do not all issue monthly statements so he needs some mechanism for knowing which invoices are not yet paid when he has the cashflow to pay them. Sage can easily provide that. Maybe run their system alongside your reporting method for a month to prove it?
My question would be - how do they find them in the various lever arch files now, once paid, if they do indeed ever need to go back to them?
Sometimes as a new person in to a new client we do have to go slowly slowly catchy monkey to get them to change their bad habit ways (of good habits to better ones!), although perhaps alongside your timely reports you can tell them your bill will be less as the new system will save you time in processing their work?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
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