USA Posting High Dollar Invoices before end of month.

[twocents]

I do minor bookwork, mainly just posting vendor invoices, dealing with statements, some IT work.
My co worker is a regular accountant: end of the month is this insane push to post high amount invoices. He does not want to wait for them to come in the mail. Have to spend time calling up the vendors and faxing or emailing these things over.

Is there any point to this? I can understand trying to post what one can, but this strikes me as extra work.

Thanks.

two cents ¢¢

 

[mike99]

Not sure if this is applicable, but in my country, one can only claim input tax on the earlier of receiving the invoice or payment. I assume for large amounts the accountant wants the tax invoice to claim input tax for the month, thereby reducing the output liability.

 

[kirby]

twocents
You are very perceptive. That practice is a huge waste of time UNLESS the big boss said it has to be done this way. Seems like there is no one at the helm to put a stop to this??. Anyway, reason it's a waste is that most invoices are about 95% to 105% of LAST month's invoice. So using last month's number as an accrual works for the rest of the world. Try this - use that method as an estimate and then compare to what your coworker actually gets.

 

[twocents]

Thanks mike and kirby.
Coming from the top is a good probability. My co-worker tends to be anal, so I am not sure how much of that goes into it. Of course, he's not the one doing this type of paper chasing for the most part.
I am not enough of an accountant to thoroughly understand what you said kirby. One reason I never went into business: I just understand numbers balancing on one side of the sheet or the other. But thanks for this information anyway: I do tend to think on them for a while and many times it becomes clear.
It is therefore just going to come under the category of a monthly annoyance. If I ever retire, I just hope they get a more experienced acct then my co-worker. That would really be the best thing: someone who would know where the lines are.

Again, thank you for your answers.

two cents ¢¢