6. In order to avoid mistakes or even paying twice to a supplier, we should have a file or a checklist where we describe the orders made, purchases, or work done by a supplier with their respective date, invoice number, and in most cases, a PO number. You must ask the supplier to provide you the original invoices. Furthermore, is very important to make sure the original invoices support accounts payable. If is a big corporation, the invoice should have the name, address and a Tax ID number to make sure it matches with your records.
7. The internal controls that I would implement to help maintain control of my credit sales and accounts receivable are:
• A credit verification and approval must be required before any delivery or service.
• Is important to provide a specific terms and conditions of payments to the customers.
• Provide an invoice with the correct information to avoid mistakes.
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The person who authorized the credit should be different from the person who collects the payments.
• Periodically, perform audits on the sales orders, authorized invoices, billings, and payments received.
8. Most companies used periodic and the perpetual inventory accounting system to maintains a record of their sales. However, a physical count of inventory on hand at least once a year is necessary to confirm the balance from accounting matches the actual inventory on hand. By the used of a physical count inventory by hand we can determine if we have lost inventory due to theft, damage, or even errors in accounting.
9. The use of sequential pre-numbering for documents such as checks, sales invoices, and purchase orders is a type of control used to ensure that we have accurate and reliable financial information. In this way, we can reconcile our finance against our records and avoid