LO C AL
EMPLOYMENT SERVICE
BOOKS OF ACCOUNT
AND
RECORD KEEPING
BEST PRACTICE
A4LES V1
BOOKS OF ACCOUNT
PAYMENT BOOK

Suppliers Invoices(s) Statements/Receipts

Wages/Allowance Calculations

Cheque Book Payments

ETF Payments

Maintenance of Payment Book
RECEIPT BOOK

Sales Invoice(s)/Receipt(s) (Pre-numbered)

Lodgement Book

Remittance Advice (s)

Maintenance of Receipt Book
PETTY CASH BOOK

Petty Cash Dockets (Pre-numbered)

Maintenance of Petty Cash Book
BANK STATEMENTS & BANK RECONCILIATIONS

Monthly
A4LES V1
PAYMENT BOOK
SUPPLIERS INVOICE(S)/RECEIPTS

Payment never made without supporting documentation.

Invoice checked for evidence of receipt of goods/service, quantity,
quality, price and calculation(s).

Always approved by either the Co-ordinator/Contractor Provider
Manager or Director.

On making payment mark invoice paid and cross reference with
cheque/ETF number and date of payment. If payment is by cheque
enter the invoice number on the cheque stub.

Following payment documentation should be filed in month and
payment date order (most recent at the front).
WAGES CALCULATIONS

Payment never made in advance of calculations.

Payment never made until either the Co-ordinator/Contracted
Provider Manager or Director has approved.

Payment made by Cheque/EFT only.

Wages slip issued to each staff member detailing deductions made.

Remit P.A.Y.E./P.R.S.I. promptly on a monthly basis.

Submit P35’s promptly at year end.
CHEQUE BOOK PAYMENTS

Supplied by bank.

Stored in a secure place.

Minimum three signatories – two of three to sign.

Ensure that all issued cheques are crossed.

Cheque information to be recorded on cheque stub.

Never sign a blank cheque/pre-sign.

Cheques always payable to third parties.

Cheques never made payable to cash.

Cheque for petty cash made out to petty cash.

Cancelled cheques retained.

Cheque to be cancelled after issue – write to bank. .

Cheque only issued where:
- an invoice has been received, checked and approved by the Coordinator/Contracted Provider Manager or Director.
A4LES V1
- Wages/Allowance calculations(s) have been completed and
signed by either the Co-ordinator/Contracted Provider Manager
or Director.
- One bank account for all transactions.
EFT PAYMENTS

Minimum three signatories – two of three to approve.

All relevant documentation approved by either the Coordinator/Contracted Provider Manager or Director.

Never process a payment before due date.

EFT always payable to third parties.

EFT only processed when:
- an invoice has been received, checked and approved by either
the Co-ordinator/Contracted Provider Manager or Director.
- Wages/Allowance calculations(s) have been completed and
signed by the Co-ordinator/Contracted Provider Manager or
Director.
- One bank account for all transactions.
MAINTENANCE OF PAYMENTS BOOK

Each page to be numbered.

Update up on a daily/weekly basis.

Total on a monthly basis and accumulate year to date at the end of
each month (down and across).

Payment analysed over main expenditure headings.

All entries in payment date sequence.

Where a cheque payment is cancelled write in date ‘cancelled’
under payee column, cheque number and ‘nil’ in cheque amount
column. Retain cheque on file with reason for cancellation.

Where cheque is cancelled after issue reverse entry in cheque
payments book and write to bank with instructions. Retain copy of
all correspondence with Bank on cancellation of cheques after
issue.

Ensure direct debits and bank charges (e.g. interest, fees, stamp
duty) are entered showing the dates that they are processed by the
bank.
A4LES V1
PAYMENT BOOK (EXAMPLE)
Date
Payee
Mar-01 Petty Cash
Mar-03 John Doe
Mar-03 John Deer
Mar-03 Maura Moon
Mar-03 Frank Starr
Mar-07 Cancelled
Mar-10 John Doe
Mar-10 John Deer
Mar-10 Maura Moon
Mar-10 Frank Starr
Mar-10 ABC Limited
Mar-16 John Doe
Mar-16 John Deer
Mar-16 Maura Moon
Mar-16 Frank Starr
Mar-24 John Doe
Mar-24 John Deer
Mar-24 Maura Moon
Mar-24 Frank Starr
Mar-16 John Doe
Mar-16 Tool Hire
Mar-20 Collector
General
Mar-03 Bank Fee
Mar-10 Bank Interest
Total Mar 98
Cum Jan-Feb 98
Cum Jan-Mar 98
A4LES V1
Payment Total
Method/
Reference
Number
Cheque
15.50
ETF
179.15
79.10
77.25
109.75
0.00
179.15
79.10
77.25
109.75
150.00
179.15
79.10
77.25
109.75
179.15
79.10
77.25
109.75
79.20
200.00
296.00
BS12
BS12
12.30
5.20
2539.20
1433.20
3972.40
Supervisors Participants Creditors Materials Training & PAYE/ Supervisors
Wages
Wages
Development PRSI
T&S
Petty Bank Interest
Cash
& Charges
179.15
79.10
77.25
109.75
179.15
79.10
77.25
109.75
150.00
179.15
79.10
77.25
109.75
179.15
79.10
77.25
109.75
79.20
200.00
296.00
716.60
716.60
1433.20
1064.40
1280.40
2344.80
0.00
0.00
200.00
412.00
612.00
150.00 296.00
180.00 498.00
330.00 794.00
79.20
189.60
268.80
0.00
40.00
40.00
12.30
5.20
17.50
15.20
32.70
RECEIPTS BOOK
SALES INVOICE(S) / RECEIPT(S)

Sales invoices/receipt(s) pre-numbered and maintained in
numerical sequence – duplicate.

Invoices/Receipt, issued for all income.

Cancelled invoice/receipt marked accordingly and retained.
Cancelled invoices must be approved by the Co-ordinator/
Contracted Provider Manager or Director.

Retain copy in invoice/receipt(s) book.
REMITTANCE ADVICE(S)

Cross Reference with date and amount of lodgement.

File in remitter and date order.
LODGEMENT BOOK

Supplied by bank.

Stored in a secure place.

Lodge all cash/cheque receipts.

Lodge regularly – where significant amount of cash, at least once a
day.

Analyse lodgement on back of lodgement stub.
MAINTENANCE OF RECEIPTS BOOK

Each page to be numbered.

Write up on a daily basis.

Funding receipts from remittances advice(s).

Sales and other income from copy sales invoices/receipts.

Analyse under appropriate headings.

Individual items in total column add up to lodgement amount in
lodgement column.

Total on a monthly basis and accumulate year to date on a monthly
basis (down and across).
A4LES V1
RECEIPTS BOOK (EXAMPLE)
Date
Details
Mar-02 FÁS
Mar-03 FÁS
Mar-03 FÁS
Mar-03 Mr J Jones
Mar-09 FÁS
Mar-10 Mr P Smith
Ref
E1234 2235.00
E1287 825.00
E1345 450.00
21
25.60
E1387 150.00
22
41.25
Total March 1998
+Cum Jan-Feb 98
=Cum Jan-Mar 98
A4LES V1
Total Lodgement Supervisor Participant
Wages
Wages
3726.85
5810.15
9537.00
eft
eft
eft
25.60
eft
41.25
792.00
Materials Development Sales of
Goods
1443.00
825.00
450.00
25.60
150.00
41.25
792.00
1584.00
2376.00
1443.00
2836.00
4279.00
825.00
940.15
1765.15
600.00
325.00
925.00
66.85
75.00
141.85
Sundries
PETTY CASH BOOK
When a Petty Cash system is initially being set up, a cheque should be drawn
for the agreed float amount, and recorded in the Payments Book under
Petty Cash. The amount should then be shown as income in the Petty Cash
Book.
PETTY CASH DOCKETS

Pre-numbered.

Stored in a secure place.

Receipts for purchase approved by supervisor.

Receipt for purchase attached to docket.

Operated by one person only.

Petty cash docket signed by recipient of money and by disburser.

All petty cash dockets approved by supervisor.

Petty cash box stored in a secure place.

Petty cash dockets and attached receipts filed in month/numerical
order.

Petty cash dockets and receipts reviewed monthly by the Coordinator /Contracted Provider Manager or Director.
MAINTENANCE OF PETTY CASH BOOK

Each page to be numbered.

Write up on a weekly basis.

From petty cash dockets only.

Analyse under appropriate headings.

Total on a monthly basis (down and across).
A4LES V1
PETTY CASH BOOK (EXAMPLE)
Amount
Bal b/f
Cheque
Drawn
4.50
15.50
Date
Payee
Voucher
No
Total
Mar-01 Super Stores
Mar-08 An Post
12
13
4.58
3.20
Mar-09 Easons
Mar-19 Feel Well Chemist
Total March 1998
14
15
4.62
5.20
17.60
Balance Carried
Forward
20.00
2.40
A4LES V1
2.40
20.00
Printing &
Stationery
Postage Cleaning
Sundries
4.58
3.20
4.62
4.62
3.20
4.58
5.20
5.20
A4LES V1
BANK STATEMENTS





One bank account only.
Statements received monthly from bank.
File in statement order.
Check for D/D, other charges or interest which appears on
statement and not written up in books.
Write up as required and cross reference – amount on statement
with page number of book and entry in book with statement
number.
BANK RECONCILIATION





Reconcile on a monthly basis
Steps to complete reconciliation
- Tick off each lodgement on the statement against the
corresponding entry in the receipts book
- Tick off each payment/charge appearing on the statement
against the corresponding entry in the payment book.
- Adjust for any differences or omissions.
- Take the closing (reconciled) book balance of last month, and
add total lodgements for month and deduct total payment for
month, this will give the closing book balance for current month
- Take the balance per the bank statement.
Add lodgements not credited on bank statement (or deduct if
balance is debit on the bank statement).
Deduct cheques which are not debited on bank statement (or add if
balance is debit on the bank statement).
The resulting figure should equal the closing book balance.
A4LES V1
BANK RECONCILIATION (EXAMPLE)
Part A:Establishing Book Balance as at 31st March 2007
Mar-01 Balance per book
Lodgements per Cash/receipts book
Payment per cheque payments book
251.42
3726.85
-3607.91
Mar-31 Balance per books
118.94
370.36
456
457
458
Part B Reconciliation
Mar-31 Balance per bank statement
Add: Lodgements not credited as
At 31.03.98
Deduct: Cheques not debited as
At 31.03.98
Add: Cheque Cancelled
Mar-31 Balance as per Book
Balance above
A4LES V1
Cheques Not Presented
No
£
449
179.15
450
78.60
451
76.75
452
109.25
153
79.70
454
272.41
455
73.20
1693.47
0.00
-1340.61
17.50
1323.11
370.36
75.25
100.00
296.30
1340.61