Step | System | Area | Description | Responsibility | Deadline |
1 | NA | Process of customer invoices | Customer invoices are prepared and entered into Xero by Aiden.
Michael will review all customer invoices vs quotations / underlying data prior to the invoice being finalised and sent to the customer.
There is no requirement for a PO to be received for some customers prior to an invoice being raised in Xero. Where there is no PO, a ‘Pro-forma’ invoice will be issued to a customer and a final invoice issued when the PO is received
To consider changing the process to only raise invoices in Xero at the point we get a PO from the customer | Michael / Aiden | [TBC] |
2 | Dext | Process of supplier invoices | Supplier invoices are sent directly to Michael
Michael will upload these invoices to Dext, which will automatically post these supplier invoices to Xero
To consider setting up a shared mailbox (monitored by Finance) to process all supplier invoices
| Michael | [TBC] |
3 | Xero | Other Book keeping | Bromhead will review postings in Xero for reasonableness. The following checks are completed on a monthly basis:
- Check the supplier payment run vs prior month to assess for completeness / accuracy etc
- Review the need to process and prepayments / accruals in the accounting system
- Bank reconciliations
- Reconcile bank payments in Xero vs the bank statements
- Calculation of Sebastian’s monthly commission for entry into Xero | Bromhead | [TBC] |
4 | FlowRev | FlowRev | Invoices are raised in Xero and automatically posted to the deferred income account. This is because at the point of being raised, the assumption is that the total revenue is deferred. The following journal entry is raised:
Dr trade debtors X
Cr VAT payable (X)
Cr deferred income (X)
All invoices raised in Xero will be pulled through into FlowRev. Bromhead will select recognition dates / criteria based on the underlying data and this is all processed in FlowRev.
FlowRev will then post the following journal, which is pushed back into Xero:
Dr deferred income X
Cr Revenue (X)
NB: Revenue is allocated to the correct account. e.g. hearing / vision etc
To agree with Bromhead when FlowRev can be up to date. This needs to be at start of each month | Bromhead | [TBC] |
5 | Xero | Credit Control | Aiden is responsible for credit control management. Aiden has a weekly call with Michael to agree on approach for chasing customers for payment | Aiden | [TBC] |
6 | Xero | Payroll | Bromhead prepare everything and then Michael will review. Then put into tellerroo and then paid. | Bromhead | [TBC] |
7 | Tellaroo | Payment approvals | Dual authorisation is set up on Tellaroo for all payments made | Michael / Authorisers | [TBC] |
8 | Tellaroo | Payment runs | Bromhead email Michael on the 10th of the month to inform that will be completing the mid-month payment run. Bromhead request to Michael that all invoices have been uploaded to Dext and hence published to Xero.
Once confirmed by Michael, Bromhead set up the payment run on Tellaroo.
Michael will then approve the payment run that has been set up on Tellaroo
Pay runs are completed twice a month. One payment run on the 15th of the month and one at the end of the month
To move to having one payment run completed at the end of the month | Michael | [TBC] |
9 | Xero | Bank reconciliation | Following completion of the end of month payment run, Bromhead reconcile the bank accounts and send queries to Michael within the first week of the following month requesting any outstanding invoices. | Bromhead | [TBC] |
10 | Xero | VAT | Bromhead are responsible for preparing the VAT return on a quarterly basis.
The draft VAT return is provided to Michael on the 14th of the month following the end of the VAT quarter. This is then submitted when has been approved by Michael | Bromhead | [TBC] |
Other notes
The monthly fee for Bromhead covers:
1) Accounting and bookkeeping
2) Payroll
3) Tellerroo Licence
Company cards currently use Wise