Tips for managing invoices

Over the years I’ve trialled different ways of managing the paper flow in my own office. I’ve found managing invoices to be something that needs extra care.

This process for paying and filing invoices is what works for me. Besides my bookkeeper always tells me how organised I am, so I must be doing something right!

Here’s my tips for managing invoices each quarter.

Invoices come in

Unfortunately they seem to do so unendingly. Those sent via email get printed and filed into the Invoices to be paid folder that sits in my in tray. Those that arrive via snail mail get put in the same file.

Invoices get paid

I’m a big believer in consistency for admin activity, so I schedule invoice payment on a weekly basis. Every Friday lunchtime, I pull out the Invoices to be paid folder. I organise the bills according to due date and decide what is getting paid that week. I then pay them, usually via Internet banking.

Invoices get filed

My filing cabinet has a folder assigned to invoices. That folder contains six manila files:

One for each of the four bank accounts and credit cards that I use.
One for invoices relating to my investment property.
One for cash payments.

Each file is clearly labelled, so that after I’ve paid the invoices on Friday afternoon, I simply stow them in the file they belong to.

Sales invoices I’ve created and bank statements also get filed in the relevant manila folder.

I ensure the paperwork inside the folders is kept in chronological order. Because I devote time to the task each week, it doesn’t become overwhelming.

Doing the books

The best thing about the system for managing invoices I have developed is when it comes time to send everything off to the bookkeeper, everything is already sorted. Each manila folder already contains all the expense and sale transactions, plus the relevant bank statements for the quarter. I label the contents and mail it all off to my bookkeeper.

Do you follow an organised system for managing invoices or are you a shoebox full of receipts type?

Megan Tough runs Complete Potential, a company that helps businesses solve their strategy and people problems. She loves being a solopreneur, and when she doesn't have her nose to the grindstone, is fulfilling her other passion of fitness and health.

3 comments | Add your own

Hi Megan
My bookkeeper comes to me, so I'm lucky, but I still have a system.
1 As Invoices come in I schedule them into my tasks list to be paid 2 days before they're due. (Nearly all are paid via I/N Banking but if not I schedule those tasks to be paid 1 week ahead of the due date)
2 The invoices then go into the top drawer of a set of drawers on my desk (A4 size and maybe 1" deep- you know Officeworks have 'em everywhere) This drawer is marked Bills To Pay
3 Payments are made as task reminders come up. Receipt is attached to the invoice and it's ready to be filed
4 Those paid from my cheque account are then placed in the Bills From Chq Accnt drawer. Also in here go any receipts from items purchased by cash or cheque.
5 Those paid by Credit card then go in the next drawer - Bills From Cr Card. Also in here go the receipts for items purchased on Credit card along with the receipts from direct debit notifications.
6 The final drawer holds all bank statements and credit card statements for the quarter and occasionally special notices from the ATO or my accountant that the bookkeeper needs to see.
When my bookkeeper arrives, I give her coffee and leave her to my desk where she preps my BAS.
And of course she loves me more because I submit my Bas electronically. So she can come and see me, after everybody else has stopped hassling her and the standard BAS due date has passed. Because electronic submission allows you two extra weeks to submit your statement and pay your dues! She's relaxed and everything is within reach of her hand!
God! I LOVE a good bookkeeper! Chris Owen from Blackburn Victoria
I personally prefer Megan’s solution with one comment to add. After processing, hopefully her book keeper will file all invoices in alphabetical order in a “Paid” file. After all it is much easier to find an old invoice filed in alphabetical order then chronological.
For the book keeper Megan keeps all paperwork in chronological order in separate manila folders and each folder assigned to different payment method such as credit card, bank statement, etc. and this makes book keeping easy not to mention saving her money on book keeping fees! Judit Nagy from Sydney
Megan after spending all day on Monday this week sorting through six months worth of accounts I can see how your system makes life much easier. I think first thing Monday mornings might become my time for accounts and admin. Johanna Baker-Dowdell from Wamberal, NSW | Read my articles

3 comments | Add your own

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