Accounting flowchart is a pictorial representation of the flow of transactions process in a specific area of the accounting and financial department. For example: Purchasing Flowchart? represents flow of transaction process in the purchasing area, Receiving Flowchart” in the receiving area, Voucher Payable Flowchart? in the Accounts Payable area, and Treasurer Flowchart? is in the treasure area [for payment purposes].
These four flowcharts is an essential guidelines-set for those four areas to carry on the day-to-day transactions. It is a one full payable cycles. ?Flowcharts use standardized symbols and enable the auditor to visualize strengths and weaknesses in internal control of those four particular areas.
This post provides those four essential flowcharts [purchasing, receiving, payable and the treasurer area]. A starter should find the flowcharts useful in understanding the payable cycles, and how flows should be carried to comply with internal control. Please note that in small-medium businesses, treasurer function often carried by the general cashier under the accounting manager or controller if it is exist. Read on…
Standardized Symbols Used in The Accounting Flowchart
- Onpage Connector (transfer of customer order to the credit dept)
- Offpage Connector (mailing of sales invoice to customer)
- Annotation (used to describe or note an activity)
- Punched Card (method of computer input)
- Magnetic Tape (method of computer input)
- Punched Tape (method of computer input)
- Manual Input (keyboard entry of data)
- Magnetic Disk (method of computer storage)
Below exhibit shows the symbols:
1. Flowchart for Purchasing
2. Flowchart for Receiving
3. Flowchart for Voucher Payable
4. Flowchart for Treasurer [for Payment]
While I believe the above four flowcharts are widely applicable for any type of industry in any size, they may not exactly suit your company. Therefore you may need to modify them, depending on the internal control policy of the company for those particular functions [purchasing, receiving, payable and the treasurer/cashier].