Standardized Financial Operations

Simplifying processes through clarity and standards.

Access streamlined finance processes within a standardized operating environment designed for efficiency and control.

Finance executive holding a laptop
Request types

Six request types. One standard flow.

Pick the request that fits. Every one follows the same route: submitted, signed off by your department, then processed by Finance.

  • Supplier Payments

    Vendor invoices and bills

    Direct payment
  • Credit Card

    Corporate card spend

    Liquidate after
  • Honorarium

    Speaker and expert fees

    Direct payment
  • Utilities

    Recurring office bills

    Direct payment
  • Compensation & Benefits

    Employee payouts

    Direct payment
  • Cash Advance

    Funds ahead of an event

    Liquidate after
  1. Submit
  2. Approve
  3. Process
  4. Paid
Financial analyst reviewing receivables on her phone
Accounts receivable

Billed or unbilled, every receivable in view.

Every receivable follows the same path: work delivered is recorded as unbilled AR, moves to billed AR once the invoice goes out, and clears when the customer pays. Clearer aging, fewer surprises at month end.

  1. Record unbilled revenue

    Log services delivered but not yet invoiced as unbilled AR, so revenue lands in the right period.

  2. Bill the customer

    Raise the invoice to move the balance from unbilled to billed AR and start the due-date clock.

  3. Collect and clear

    Match customer payments to open invoices, follow up on aging balances and close the receivable.

Compliance Alert

Why signed contracts matter?

3 min read Finance team

Until both sides sign it, a contract is only a draft, and a draft is a weak basis for releasing company money. This is why Finance asks for the fully signed copy, and what to check before you raise a payment request.

What counts as a signed contract

A signed contract is the final, agreed version of the document, signed by everyone who needs to sign it. In practice, that means it is:

  • Signed by both parties: the supplier and the company's authorised signatory.
  • Complete, with every page, annex and schedule that forms part of the agreement.
  • Dated, with an effective date and term that cover the work being billed.
  • Final: the version that was actually agreed, not a marked-up draft.

Why Finance asks for it before paying

It makes the terms enforceable

Scope, price, deliverables and timelines are written down and accepted by both sides. If a dispute comes up, the company can point to what was agreed, not to memory or an email thread.

It gives auditors a clear trail

Every payment should trace back to an approved obligation. The signed contract shows the spend was authorised and agreed before it happened.

It supports the expense for tax

Expenses need proper supporting documents. Together with the invoice and official receipt, a signed contract helps show the cost is real and business-related.

It confirms the right people approved

Signatures show the commitment was made by someone with the authority to make it, within their approval limits.

What can go wrong without one

Example

A team agrees a six-month service engagement over email and the supplier starts work. Halfway through, the supplier bills for extra deliverables the team thought were included in the original price. With no signed contract there is no agreed scope to point to. The dispute comes down to how each side reads an email thread, and the payment stays on hold until it is settled. The same gap shows up at audit, where a payment with no signed agreement behind it is likely to be flagged as unsupported.

Before you raise the request

Run through these four checks before you submit a Supplier Payments request. A request that fails one is likely to be sent back to you.

  1. Both parties have signedLook for signatures from the supplier and from the company's authorised signatory. A copy signed only by the supplier is not enough.
  2. The dates cover the workThe contract was in effect when the work started, and it has not expired.
  3. The invoice matches the contractThe amount, scope, rates and payment terms on the invoice match what was signed.
  4. The full copy is attachedAttach the complete signed PDF, annexes included, so approvers and Finance all review the same document.

Common questions

Are electronic signatures accepted?

Yes, when they are applied through an approved e-signature platform that records who signed and when. A typed name or a pasted image of a signature is much weaker evidence, so check with Finance if you're unsure.

The work started before the contract was signed. What now?

Tell Finance as soon as you can. Don't wait for the invoice to arrive. Get the contract signed promptly, and Finance and Legal can advise on how to cover the work already done.

Does a purchase order replace a contract?

For a simple, one-off purchase, an approved purchase order that the supplier has accepted may be enough. Services, retainers and engagements that run across several periods usually need a signed contract. If you're not sure which applies, ask Finance before you commit.

Compliance Alert

Why Service Invoice is important?

4 min read Finance team

A service invoice is the supplier's formal bill for work they have done for the company. Finance pays against it, records it in the books and keeps it for tax and audit, so a missing or faulty invoice holds up payment. This is what makes an invoice valid, and what to check before you raise a payment request.

What makes a service invoice valid

A valid service invoice comes from the supplier and gives Finance everything it needs to pay, record and report the cost. Check that it is:

  • Issued by the supplier on their own invoice, showing their registered name, address and tax ID.
  • Made out to the company: the registered name, address and tax ID of the entity being billed, not an employee or a department.
  • Numbered and dated, with an invoice number the supplier hasn't used before.
  • Specific about the service: what was done, the period it covers, and the quantities and rates behind the amount.
  • Correct in its amounts, with any tax shown separately where it applies.
Sample VAT invoice from Annex A1 of RMC No. 77-2024 with twelve numbered callouts: the word Invoice, the seller's logo, trade name, registered name, TIN and address, the serial number, the date, the buyer's registered name, TIN and address, the description, quantity, unit price and amount, the total with its VAT breakdown, senior citizen and PWD details, and the printer's permit and ATP details.
Annex A1 of BIR RMC No. 77-2024 marks each of these on a sample VAT invoice. The numbered notes under the sample explain every callout. Open full size

Not every bill is an invoice

Suppliers send several documents that look like bills. Only one of them is something Finance can pay against.

  • QuotationAn offer: what the work would cost, sent before it starts.
    Not an invoice
  • Pro-forma invoiceA preview of the invoice to come, often used to arrange an advance. It is not the final bill.
    Not an invoice
  • Statement of accountA summary of what the supplier says is outstanding, often across several invoices.
    Not an invoice
  • Service invoiceThe supplier's formal bill for work delivered, with its own number and date.
    Pay against this

Why Finance needs it before paying

It shows exactly what is owed

Who is being paid, how much, for what and by when, in one document issued by the supplier. Payments are made against the invoice, not against a quote or an estimate.

It supports the tax treatment

Input tax can generally only be claimed on a valid invoice made out to the company, and withholding tax is worked out from the invoiced amount. Wrong details can mean tax the company can't recover.

It puts the cost in the right period

The invoice date and the service period tell Finance which month the expense belongs to, so costs are recorded when they happen and the month-end numbers are right.

It guards against paying twice

Each invoice has its own number. Finance uses it to match the payment to the contract or PO, and to catch an invoice that has already been paid or has been altered.

What can go wrong without one

Example

A team books a venue and audio-visual supplier for a client event. Afterwards the supplier emails a statement of account, and the team raises a Supplier Payments request with it attached. Finance sends the request back, because a statement of account is not an invoice. When the invoice does arrive, it is made out to the event organiser personally rather than to the company, so the supplier has to reissue it. The supplier is paid weeks later than agreed, though nothing was wrong with the service. One email at the start would have avoided it: ask for the invoice, made out to the company.

Before you raise the request

Run through these four checks before you submit a Supplier Payments request. A request that fails one is likely to be sent back to you.

  1. It's an invoice, not a look-alikeNot a quotation, pro-forma or statement of account. If that's all you have, ask the supplier for the invoice before you submit.
  2. It's made out to the companyCheck the company name, address and tax ID against the entity that is paying, letter for letter.
  3. It matches what was agreed and deliveredThe description, period, rates and amount match the contract or PO, and the work has actually been done.
  4. The supporting documents are attachedAttach the invoice with the signed contract or PO and any proof of delivery, so approvers and Finance all review the same set.

Common questions

The supplier wants to be paid before they invoice. Is that allowed?

Talk to Finance first. Some agreements include an advance or down payment, and Finance can advise on what to submit for it. The supplier still needs to issue a proper invoice for the work, and you'll need to submit it once it arrives.

There's a mistake on the invoice. Can I correct it myself?

No. Ask the supplier to issue a corrected invoice. Handwritten changes, or edits made to the PDF, make the document unreliable for payment, tax and audit.

Why is the amount paid less than the invoice total?

Most often because of withholding tax. Where it applies, the company holds back part of the payment and pays it to the tax authority on the supplier's behalf, and the supplier receives a certificate for it. See Withholding tax obligations explained.

Compliance Alert

Withholding tax obligations explained

4 min read Finance team

When the company pays a supplier, it often has to hold back part of the payment as tax and pay it to the tax authority on the supplier's behalf. This is withholding tax. The company is responsible for getting it right, which is why Finance asks for certain details before paying, and why a supplier can receive less than their invoice total.

How withholding works

The supplier invoices the full amount. When the company pays, it splits that amount in two: most goes to the supplier, and the withheld part goes to the tax authority. In most cases nothing is lost to the supplier. They receive a certificate for the tax withheld and use it to reduce their own income tax.

Invoice total
Paid to the supplierThe invoice total less the tax withheld, paid on the agreed terms.
Withheld by the companyPaid to the tax authority on the supplier's behalf. The supplier gets a certificate for it.
Not to scale. The share withheld depends on the type of payment and who is being paid.

What decides how much is withheld

You don't work out the amount. Finance does. What Finance needs from you is a request that describes the payment accurately, because the amount depends on:

  • What the payment is for: services, professional fees, honoraria, rent and goods can each be treated differently.
  • Who is being paid: an individual or a company, and whether the supplier is based locally or abroad.
  • The supplier's tax status: some suppliers qualify for a different rate or an exemption, which they have to support with documents Finance can keep on file.

Rates at a glance

For most payments, the type of payment sets the rate. These are the ones you'll see most often:

Payment forRate withheld
GoodsSupplies, equipment and other items bought from a supplier.
1%
ServicesWork done by a contractor, such as event production, printing, repairs or courier.
2%
RentalRent for office space, venues, equipment or vehicles.
5%
Professional feeFees for professionals, such as consultants, lawyers, accountants and speakers.
10%
Standard rates. A supplier's tax status can change the rate, so Finance confirms it on each request.

Why it matters to the company

The company carries the liability

If the right amount isn't withheld, the tax authority can collect the shortfall from the company, with penalties and interest, even though the tax was the supplier's.

The cost may not be deductible

Where withholding was required and wasn't done, the company may not be able to deduct the expense for its own income tax, so one slip can cost twice.

It runs on fixed deadlines

Withheld tax is paid over and reported on a set schedule. Late or unclear requests eat into the time Finance has to file it correctly.

Suppliers rely on the certificate

Suppliers use it to claim credit for the tax withheld. A wrong name or tax ID gives them a certificate they can't use, and a reason to keep chasing you.

What can go wrong

Example

A team invites a guest speaker to a client webinar and agrees a fee by email: one round figure, with nothing said about tax. After the event the team raises an Honorarium request for that figure. Finance withholds tax as required, so the speaker receives less than they expected and asks the team why. Topping up the payment would mean the company paying the speaker's tax on top of the fee, which is a new cost that needs its own approval. One line in the first email would have avoided it: say whether the fee is before or after withholding tax.

Before you raise the request

Run through these four checks before you submit a Supplier Payments or Honorarium request. A request that fails one is likely to be sent back to you.

  1. The payment is described accuratelySay what you are paying for: a service, a professional fee, an honorarium, rent or goods. The type of payment decides how it's taxed, so a vague description slows things down.
  2. The supplier's registered details are rightThe registered name, address and tax ID match the invoice letter for letter, because Finance puts them on the certificate. See Why Service Invoice is important?
  3. Gross or net was agreed up frontFees should be agreed before withholding tax. If a supplier insists on receiving a fixed amount after tax, raise it with Finance before you commit, because the company would bear the tax on top.
  4. Anything unusual is flaggedTell Finance if the supplier is based abroad, says they are exempt, or is an individual being paid for the first time, and attach any document they gave you.

Common questions

The supplier says they're exempt from withholding. What do I do?

Ask them for the document that supports it and attach it to the request. Finance decides whether the exemption applies. Without the document, Finance withholds as normal.

Can we pay the full amount now and sort out the tax later?

No. The tax has to be withheld at the time the rules set, not afterwards. Fixing a missed withholding later is slow, and the company can still face penalties. Ask Finance before you promise a supplier a particular amount.

A supplier is asking me for their certificate. Can I send it?

Forward the request to Finance. Finance issues the certificates and sends them to the supplier, so every copy matches what was filed.

Compliance Alert

Record retention for audit readiness

4 min read Finance team

Every payment the company makes has to be explainable long after it was made, often years later, to an auditor or a tax officer who wasn't there. Record retention is how we make sure the evidence still exists when they ask. Most of it happens in the portal, as long as each request is complete when you submit it.

What audit-ready means

An auditor picks a payment and follows it back to the reason it was made. Audit-ready means every step along the way has a record behind it, and the records agree with each other.

  1. RequestWhat was bought, why, and who asked
  2. ApprovalThe right people, within their limits
  3. SupportContract or PO, invoice, proof of delivery
  4. PaymentThe money went to the right payee
  5. BooksRecorded in the right account and period

A missing record anywhere along the line breaks the trail, even when every other step is in order.

What to keep, and where it lives

Most of the trail is built from what you attach. The two documents auditors ask for most have reports of their own: Why signed contracts matter? and Why Service Invoice is important?

  • Signed contract or approved POThe agreement behind the spend: scope, price and terms.
    You attach
  • Invoice and receiptWhat the supplier billed, made out to the company. The original hard copy of the invoice also goes to Finance.
    You attach
  • Proof of deliveryA delivery receipt, completion report or sign-off showing the work was done.
    You attach
  • Liquidation receiptsFor cash advances and card spending: every receipt behind the amount spent.
    You attach
  • Approvals and payment detailsWho approved and when, and the payment that followed.
    The portal records it
Reminder

Submit the original hard copy of the invoice to Finance. The scan you attach in the portal lets your request move through approval, but Finance still needs the original invoice for the company's records. Send it in once your request is submitted, and don't keep it in a desk drawer.

Why it matters

Audits go faster

When the evidence is complete and easy to find, auditors test it and move on. Gaps turn into questions, follow-ups and findings.

Tax claims hold up

An expense or a tax credit is only as strong as the documents behind it. If a record can't be produced, the claim can be disallowed years after the money was spent.

People move on

The person who raised a request may have changed roles or left by the time someone asks about it. The record has to explain itself without them.

Disputes need evidence

A complete trail lets the company answer a supplier dispute quickly, and makes a duplicate or altered document easier to spot.

What can go wrong

Example

An audit sample includes a payment to an events supplier from two years earlier. The request in the portal has the invoice attached, but the signed contract and the event sign-off were only ever sent by email, and the employee who handled them has since left the company. Finance can show the money was paid, but not what was agreed or that the work was delivered, so the payment is reported as unsupported. Every document existed at the time. They just weren't attached where the company keeps its records.

Before you submit

Run through these four checks before you submit any request. The few minutes they take now save Finance hours of searching later.

  1. The full set is attachedThe contract or PO, the invoice and any proof of delivery, together on one request. Don't rely on a document being "on file somewhere".
  2. Every scan is readableWhole pages, the right way up, with amounts, dates, tax IDs and signatures legible. A blurred photo of a crumpled receipt rarely survives an audit.
  3. A stranger could follow the purposeDescribe the payment for someone who has never heard of the project: what it was, who it was for, and the period it covers.
  4. The original invoice goes to FinanceSubmit the original hard copy of the invoice to Finance, not just the scan. If Finance asks for any other original, send that in too rather than keeping it in a desk drawer.

Common questions

How long are records kept?

For the period set by law and company policy. That runs for years, not months, and can be longer for some records. Finance can confirm the period for a specific document. Don't destroy anything connected to a payment without checking first.

Is a scanned copy as good as the original?

For most records, a clear and complete scan attached to the request is what Finance works from. The invoice is the exception: attach the scan and submit the original hard copy to Finance as well. For other documents, hold on to the originals until Finance confirms they aren't needed.

Should I keep my own copies too?

You don't need to. The copy that counts is the one attached in the portal. Documents kept only in a personal inbox or drive can't be found when you're away, and copies with bank or personal details are safer not kept at all.

Policy Update

Expense reimbursements done right

4 min read Finance team

When you pay for a work expense out of your own pocket, the company pays you back. That goes smoothly when the claim shows what was spent, why it was spent, and that the cost really belongs to the company. This is what Finance checks on every claim, and how to get your money back without the claim being sent back to you.

Reimbursement, cash advance or company card?

There are three ways to pay for a work expense. They differ in who pays first and what you submit afterwards, so pick the one that fits before you spend.

Reimbursement

Who pays first
You, from your own money
Best for
Small or unplanned costs
Afterwards
One claim, with a receipt for every item

Cash Advance

Who pays first
The company, before the event
Best for
Planned events and trips
Afterwards
A liquidation against your receipts

Credit Card

Who pays first
The company, through the card
Best for
Bookings, subscriptions and online purchases
Afterwards
A liquidation for each charge

Where to file your claim

You claim your reimbursements through the Expense Claims App. You can open the app on its own, or reach it through the portal: choose Expense Claim App on the rail at the left of the page, and the app opens inside the portal. Select your country, check the settlement currency shown under it, and press Go to start your claim.

The Expense Claims App open inside the portal, with the portal's left-hand rail on the Expense Claim App icon. The app's welcome screen shows the MIMS logo, a country dropdown set to Philippines with settlement currency PHP, a Go button, and notes that original medical receipts go to HR and other original receipts go to Finance. An Open in new tab button sits at the bottom right.
The Expense Claims App opened from the portal. If you'd rather work in a full browser tab, use Open in new tab at the bottom right. Open full size

Attaching a receipt in the app doesn't replace the original. As the app's notes say, submit the original receipt for a medical claim to HR, and the original receipt for any other claim to Finance.

What makes a claim complete

Finance reimburses a claim when it can see what was bought, from whom, for how much and why. Make sure yours has:

  • A receipt for every item: an official receipt or invoice issued by the seller. A card slip or a bank statement shows that you paid, not what you bought.
  • The business purpose: what the expense was for, and the client, project or event it relates to. For meals and entertainment, add who attended.
  • The company's details where possible: ask the seller to put the company's registered name, address and tax ID on the receipt.
  • Amounts that agree: the claim total matches the receipts, in the currency you actually paid.
  • The right approval: the expense is one the policy allows, within any limits that apply, and approved by your approver.

Why it matters

You get paid sooner

A complete claim goes straight through approval and processing. A claim with a missing receipt or an unclear purpose comes back to you, and the clock starts again.

The company can claim the tax

A receipt made out to the company supports the expense for tax, and lets Finance claim the VAT on it where that applies. A receipt in your own name is much weaker support.

Business and personal stay apart

Only business costs are reimbursed. Paying back a personal expense could be treated as extra pay, with tax consequences for you and for the company.

It protects you too

Clear receipts and a stated purpose answer any later question about the claim, an auditor's included, without anyone having to rely on memory.

What can go wrong

Example

An employee takes a client to dinner, pays on their personal card and keeps only the card slip. A month later they submit the claim with a one-word description: "Dinner". Finance sends it back. A card slip shows a payment, not what was bought or who sold it, and nothing says who the client was or why the dinner was needed. Getting an official receipt now means calling the restaurant and waiting for a copy, so the employee waits weeks longer for money they spent on the company's behalf. Asking for the official receipt at the table, made out to the company, and writing one line about the meeting would have avoided all of it.

Before you submit

Run through these four checks before you submit an expense claim. A claim that fails one is likely to be sent back to you.

  1. Every item has its receiptOne official receipt or invoice per item, whole and readable. A card slip or an e-wallet screenshot on its own isn't enough.
  2. The purpose makes sense to a strangerSay what it was, who it was for and when. For meals and entertainment, list who attended and the companies they're from.
  3. The amounts and currency agreeThe total matches the receipts. If you paid in a foreign currency, attach the card or bank statement that shows the amount you were actually charged.
  4. It goes in promptlyClaim soon after you spend, not in a pile at the end of the quarter. Old receipts are harder to check, and a late claim can miss the period it belongs to. See Year-end closing checklist.

Common questions

I lost the receipt. Can I still claim?

Ask the seller for a copy first. If one really can't be issued, talk to Finance before you submit. A claim without a receipt may not be reimbursed, and even when it is, the company usually can't claim the tax on it.

Can I claim something I use for work but will keep?

Check with your approver before you buy. Only costs incurred for the business are reimbursed, and items you'll keep, such as equipment, usually need approval first.

When should I ask for a cash advance instead?

When you know ahead of time that an event or trip will cost more than you'd comfortably carry yourself. Request a Cash Advance before you go, then liquidate it against your receipts afterwards.

Tax Guidance

VAT compliance essentials

4 min read Finance team

VAT is a tax on spending, collected at each step of a sale. The company pays VAT to suppliers when it buys, charges VAT to customers when it sells, and pays the tax authority the difference. That difference only works in the company's favour when each purchase is backed by a valid VAT invoice, and that's where your requests come in.

How VAT works for the company

Each VAT period, the company adds up the VAT on its sales and subtracts the VAT on its purchases. Only the balance is paid to the tax authority.

Output VATCharged to customers on what the company sells
−
Input VATPaid to suppliers on what the company buys, backed by valid VAT invoices
=
VAT payablePaid to the tax authority for the period
Input VAT only counts when a valid VAT invoice backs it. An invoice that can't be used leaves its VAT as a cost, on top of the price.

Which invoices let the company claim VAT

Whether the VAT on a purchase can be claimed depends on the document behind it, not on whether the VAT was paid.

  • VAT invoice made out to the companyFrom a VAT-registered supplier, with the company's registered name, address and tax ID, and the VAT shown separately.
    VAT claimable
  • Invoice from a supplier who isn't VAT-registeredNo VAT was charged, so there is none to claim. The full amount is the cost.
    No VAT to claim
  • Receipt in an employee's nameOr one without the company's tax ID. The VAT was paid, but the company can't claim it.
    VAT lost
  • Quotation, statement or card slipNone of these is an invoice. See Why Service Invoice is important?
    Not an invoice
  • Invoice from a supplier abroadServices bought from overseas can carry VAT rules of their own. Flag them so Finance can handle them.
    Ask Finance

Why it matters

Lost VAT is a real cost

When the company can't claim the VAT on a purchase, it simply pays more for it. Small slips across a year of purchases add up.

Returns run on a fixed schedule

VAT is reported and paid every period. An invoice that turns up late or wrong can miss the return it belongs to, and correcting a return afterwards is slow.

Claims get checked

The tax authority can test the input VAT the company claims against the invoices and against suppliers' own records. A claim the company can't support is disallowed, often with penalties.

The description drives the treatment

Some purchases are taxed differently, or not at all. An accurate description of what was bought lets Finance record the VAT correctly the first time.

What can go wrong

Example

A team orders printed materials for a conference from a VAT-registered printer. When the printer asks who to bill, the team member gives their own name, pays on a personal card and claims the cost back. The VAT on the invoice is real and has been paid, but the invoice isn't made out to the company, so Finance can't claim it. The order costs the company more than it should have, by exactly the VAT. Giving the printer the company's registered name, address and tax ID when the order was placed would have saved it.

Before you raise the request

Run through these four checks before you submit a request with a VAT invoice attached. A request that fails one is likely to be sent back to you.

  1. It's made out to the companyThe registered name, address and tax ID match the paying entity letter for letter. Give the supplier these details before they invoice, not after.
  2. The VAT is shown separatelyThe invoice shows the VAT apart from the price, along with the supplier's own tax ID. If a supplier you expected to charge VAT didn't, ask them why.
  3. It's dated when the purchase happenedThe invoice date fits the delivery or service period. Send it in promptly, so it lands in the right VAT period.
  4. Anything unusual is flaggedTell Finance about overseas suppliers, suppliers who say a sale is exempt or zero-rated, and invoices that look different from usual.

Common questions

The quote included VAT. What amount should I request?

The amount you'll actually pay, VAT included. Finance separates out the VAT when it records the invoice.

The supplier isn't VAT-registered. Is that a problem?

Not in itself. Many smaller suppliers aren't. There's simply no VAT to claim, so compare quotes on the full price you'll pay. If a supplier charges VAT but says they aren't registered, tell Finance before you pay.

There's a mistake on the VAT invoice. Can I fix it?

No. Ask the supplier to issue a corrected invoice. An invoice that has been edited by hand or in the PDF can't support a VAT claim.

Finance Ops

Year-end closing checklist

4 min read Finance team

At year end, Finance closes the books for the whole year: every cost recorded in the year it belongs to, every advance accounted for, every balance checked. Much of what Finance needs at that point is still with the teams who spent the money. This is what to clear before the cut-off, and why it can't wait until the new year.

What Finance needs, and when

Year end comes in three phases. Most of your part happens in the first two.

  1. Before the cut-off The weeks leading up to year end
    • Submit every pending request, and any invoice you're holding.
    • Liquidate open cash advances and card spend.
    • Chase suppliers for invoices on work already done.
  2. At the cut-off The last working days of the year
    • Tell Finance what you received but haven't been billed for.
    • Flag payments that cover next year, like annual subscriptions.
    • Confirm which open purchase orders are still needed.
  3. After year end While the books close and the audit runs
    • Answer Finance's questions quickly.
    • Keep supporting documents complete and attached.
    • Never backdate a document to fit it into the old year.

Why the cut-off matters

Costs land in the right year

The year's results should include every cost of that year and none of the next. A cost that slips across the line makes both years wrong.

Open advances stay unexplained

An unliquidated cash advance or card charge is company money that hasn't been accounted for yet. It stays on the books until it's cleared, and it's exactly the kind of balance auditors ask about.

Accruals need your input

Finance can only record a cost the supplier hasn't billed yet if someone says the work was done. Usually that someone is you.

The audit starts here

Auditors begin with the year-end balances. Complete records mean fewer questions in the new year. See Record retention for audit readiness.

What can go wrong

Example

In the last month of the year, an agency delivers a campaign for a team. The agency is slow to invoice, and the bill only arrives two months into the new year. Nobody told Finance the work was done, so the old year's books show no cost for it. The full amount lands in the new year instead: last year looks better than it was, this year's budget looks overspent, and the auditors ask why. A short note to Finance at year end, saying the work was delivered and roughly what it would cost, would have put the cost in the right year.

Before the cut-off

Run through these four checks before Finance's year-end cut-off. Each one you clear now is one less query after the books close.

  1. Nothing is waiting on youDrafts are submitted, invoices are forwarded, and sent-back requests are fixed and resubmitted.
  2. Every advance and charge is liquidatedThis year's cash advances and card spend are liquidated with their receipts, or Finance knows why one can't be yet.
  3. Unbilled work is reportedFor goods and services received this year but not yet invoiced, tell Finance the supplier, what was delivered and an estimated amount.
  4. The dates are in your calendarBlock time before the cut-off, not on the day. Your approvers need time to approve, too.

Common questions

An invoice for this year's work came after the cut-off. What now?

Submit it as soon as it arrives, and say in the request which year the work was done. If you reported the work at year end, Finance will already have recorded an estimate and will match the invoice against it.

Can I prepay next year's costs to use up this year's budget?

Talk to Finance first. A payment for goods or services you'll receive next year is usually recorded as a prepayment and charged to next year, when you actually use them.

Finance asked me for an estimate. Isn't that guessing?

It's a best estimate of a cost that has already been incurred, and a reasonable figure now is far better than none. Finance adjusts it when the real invoice arrives.

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