Accounting Payables is one of indispensable parts of Finance Department. And to complete this process to all suppliers in the most accurate way, check payment is required with many strict company regulations. So what is the definition of check payment and what are requirements of this process?
Check payment is a final step at a stage of document process before paying debts to suppliers. Firstly, to process a payment, enterprises receive contracts and invoices of those purchases after using the outside services. After receiving full documents, payables accountants will process these payments. The payment of dossier must have all the following documents:
– Payment request forms
– Commercial invoices (with legal information in accordance with Vietnamese Accounting Standards)
– Business Contracts ( with signatures of enterprises’ directors)
– Purchasing orders and purchasing requests
– Others necessary documents…
According to Vietnamese Accounting Standards, check payment
can be interpreted as a manual process through many steps including:
– Receiving payment documents from department using those services
– Checking the legality of payment documents about the accuracy of invoices, commercial contracts, purchasing orders – requests and other relevant documents due to the compliance of accounting regulations.
– Booking on the accounting systems and making payment slips
– After completing all above process, payable accountants will be responsible for checking all process before paying to vendors, including: beneficiary name and bank account, the descriptions of payments and the payable amount.
In the present society, thanks to the development of IT, manual check payment is replaced by electronic and automated systems to take control in most of processing activities which brings many benefits for both companies and consumers.
For every business, thanks to this improvement of E-check, it can get more opportunities to expand their business and reduce the amount of time to process payment to improve client’s satisfaction as well as users’ convenience than using petty cash or manual payment slips containing so much unexpected risks. Besides that, E-check can minimize the loss of documents when processing documents from one department to another, reduce the amount of petty cash regulating in the market, save transporting resources and facilitate the management of cash in the country, too. Moreover, E-check payment is such an economical method as the low fees of maintenance, high accuracy as minimizing risks of fraudulent activities as it is done through machine and protective software mechanism.
Although there are many conflicts in the continuation of this checking payment in near future because of its complexity and the unavailability of various payment methods, checking payment is remained to be an indispensable step in controlling the cash flows of business financial management. However, in the development of electronic systems, check payment will gradually be improved in both internationally and domestically processed.