Everyday Finance

How to Process Cheques, Cash Deposits, Issuing Invoices etc.

Finance Workflow:

Issued Invoices

Manager of project /Finance Manager request invoice to be issued.

On Xero, find the relevant contact, create new invoice, include unit price of goods/services, number of units, VAT if applicable, income category code, PO number if applicable and recipient details.

Note: In general invoices are issued with a 30 day due date. If it is a large company, a 14 day term is put in place.

Pro tip: if the customer is new to SOHK click create a new contact in the 'Contacts' tab. Here you can pre-programme the term dates etc. and include the recipients contact details.

Finance Manager/Bookkeeper issue invoice in Xero and send to named recipient by email or by post.

Received Invoices

Suppliers and staff members send received invoices to Receiptbank.

Manager/Finance Manager who commissioned services checks with suppliers and staff members to make sure information is accurate and authorises invoice in Receiptbank, publishing it to Xero with a spending category, programme code and fund code for all invoices.

Bookkeeper/Finance Manager review invoices in Xero and checks value – if value of invoice is under £5k, Bookkeeper can approve for payment; if value of invoice is over £5k, Finance Manager/CEO must approve.

Bookkeeper/Finance Manager set up payments in CAF Bank.

Note: when scheduling payments be mindful of due dates e.g. expenses are paid within two weeks, as are Freelance invoices, larger company invoices are paid 4 weeks after receipt.

Pro tip: when scheduling payments in CAF ensure to select second confirmation 'OK' otherwise the payment will not be scheduled.

Following scheduling payments in CAF return to Xero and mark the invoice as paid recording the reference number, scheduled date of payment and the account the sum will be debited from.

Bookkeeper/Finance Manager second authorises payments in CAF Bank.

Issuing Cheques

Wherever possible, SOHK settles invoices and payments by BACS.

If cheque is the only possible payment method, cheques are issued by the Finance Manager. All cheques must be signed by two authorised signatories or they will not be valid.

Cheques must be issued against original invoices. If no invoice is available, the Finance Manager will authorise payment on a case-by-case basis and obtain whatever documentation is practical, up to a limit of £250. Above this threshold, appropriate documentation must be obtained.

Payments by cheque are entered into Xero by the Finance Manager. They are reconciled with the bank statement on a monthly basis in Xero by the bookkeeper.

Received Cheques

Take a photograph of the cheque for reference.

Record the cheque in the paying in slip book (giro) with relevant details such the total sum and the issuer/relevant programme/ applicable fund.

Place cheque in a CAF envelope with the bank account and sort code number written on it.

This can then be lodged in the account by the Post Office or HSBC bank.

Cash Received

Count all money received and record it on the Cash processing sheet with the relevant details e.g. programme, funds, etc.

Sign, date and have the final figured checked by another member of staff. Staff member to sign and date Cash Processing sheet. Upload to Sharepoint.

Record sums counted on the bank paying in slip with the relevant programmes etc.

In individual bank cash bags submit all money collected and the paying in slip to HSBC Bank.

Expenses

Staff use Dext (Receiptbank) to record receipts for all expenses. Staff are to create expense reports with spending category codes and fund/programme code if the spending is of restricted funds. Staff submit via Dext to approval to Finance Manager.

Finance Manager authorises expenses and published to Xero for the Bookkeeper to review and process.

Finance Manager rechecks expenses once they reach Xero; Finance Manager must manually update the due date of expenses in Xero to 14 days from the date the expense report was summited.

Bookkeeper sets up payments in CAF for expenses.

Expenses for the CEO and Finance Manager are reviewed and approved (or remedial action is requested) monthly by the Trustee Board Finance Subcommittee.

Spending on SOHK Bank Cards

Wherever possible, SOHK settles invoices and payments by BACS.

Staff with bank cards use Receipt Bank app to record all bank card receipts. Every receipt is tagged with a spending category code and a project code if the spending is of Restricted Funds. Staff then publish bank card receipts to Xero.

Every receipt needs a spending category, programme code and fund code.

Finance Manager reviews bank card receipts monthly and raises any anomalies with responsible staff member.

Spending by CEO and Finance Manager is reviewed and approved (or remedial action is requested) monthly by the Trustee Board Finance Subcommittee.