Accounts Payable Specialist

1. Purpose

The purpose of this SOP is to define the responsibilities, workflows, and standards for the **Accounts Payable Specialist** at DB Cleaning Services and its associated entities such as DBella Builders, DB Home Services, DBC Properties, and other entities. The AP Specialist ensures the timely and accurate processing of multi-company payroll and of vendor and subcontractor invoices and payments while maintaining compliance with financial regulations and company policies.


2. Scope

This SOP applies to all activities related to accounts payable, including employee, vendor, subcontractor, local and international consultants management, invoice processing, payment disbursement, reconciliation, and compliance. The AP Specialist collaborates with the finance team, operations team, legal team, department heads, internal staff and external vendors and subcontractors, and financial institutions to maintain smooth operations.



3. Responsibilities

The Accounts Payable Specialist is responsible for:

- Employee Management: Maintaining accurate direct employee records and resolving inquiries.

- Vendor and Procurement Management: Maintaining accurate vendor records and resolving inquiries.

- Subcontractor Management: Maintaining accurate subcontractor records and resolving inquiries.

- Invoice Management and Processing: Ensuring all invoices are properly authorized, matched, and recorded.

- Workforce Payment Administration:

1. Maintain payment records for employees, subcontractors, consultants, remote workers, and field personnel.

2. Collect and verify approved timesheets, work orders, service reports, and labor records on a weekly basis.

3. Review approved rates and weekly payment submissions for accuracy and completeness.

4. Prepare and process weekly workforce payment batches after management approval.

5. Record all workforce payments in accounting systems and maintain supporting documentation for audit purposes.

6. Resolve payment discrepancies and respond to workforce payment inquiries within established service standards.

- Payment Processing: Processing payroll payments on time for W-2 employees, and 1099 contractors, local and international consultants, remote workers, field personnel, as well as, internal procurements, purchase orders, and vendor obligations according to approved schedules and terms.

- Reconciliation: Daily reconciling accounts payable records with the general ledger. Daily QuickBooks categorization. Ensuring all payments are correctly recorded and reconciling discrepancies.

- Compliance and Internal Controls: Ensuring adherence to internal controls, financial policies, and legal requirements.

- Reporting and Financial Analysis: Prepare and present weekly and monthly AP aging reports for internal review and audits. Cash Flow, Budgeting, Expense Tracking, forecasting inflow and outflow and P&L, and other reports.

- Risk Mitigation: Identifying and addressing risks such as duplicate payments, fraud, and discrepancies.

- Communication and Dispute Resolution: Managing employee, subcontractors and vendors inquiries and resolving payment discrepancies and disputes efficiently.


4. Procedures

4.1 Employee Management

- Frequency: Ongoing.

- Process:

1. Maintain a centralized employee database, ensuring accurate and up-to-date information (e.g., name, SSN, bank account information, local and federal government tax compliance set up, payment terms).

2. Verify receipts of records of employees, verify legitimacy and obtain necessary documentation (e.g., I-9, W-4, contracts, set up payroll accounts).

3. Communicate with employees to resolve payment inquiries or disputes.

4. Conduct periodic reviews of employees accounts to identify inactive or duplicate records and maintain current accounts.


4.2 Vendor and Subcontractor Management

- Frequency: Ongoing.

- Process:

1. Maintain a centralized vendor and subcontractor database, ensuring accurate and up-to-date information (e.g., name, tax ID, bank account information, payment terms).

2. Verify contractor, vendor legitimacy and obtain necessary documentation (e.g., W-9, contracts, set up store online accounts).

3. Communicate with contractors and vendors to resolve payment inquiries or disputes.

4. Conduct periodic reviews of subcontractors and vendors accounts to identify inactive or duplicate records and maintain current accounts.


4.3 Invoice Processing

- Frequency: Daily or as invoices are received.

- Process:

1. Invoice Generation: Internal invoices generated for control of payments released and maintained at the database for reconciliation and audit purposes.

2. Invoice Receipt: Collect invoices via email, physical mail, or through electronic systems.

3. Validation: Verify that each invoice includes accurate details (e.g., name, invoice date, amount, purchase order).

4. Approval Workflow: Submit invoices for approval based on company policy (e.g., department heads/management, Controller). Submit internal Purchase Orders for procurement for approval based on company policy.

5. Matching: Match invoices and procurement orders to corresponding purchase orders and delivery receipts.

6. Recording: Enter validated invoices into the accounting system with appropriate coding (e.g., expense category, department).


4.4 Payment Processing

- Frequency: Weekly or per contractor, vendor terms.

- Process:

1. Generate a list of due payments from the accounting system.

2. Prepare payment batches (e.g., checks, ACH transfers, wire payments).

3. Submit payment batches for review and approval by the department head/management and/or Controller.

4. Disburse payments, ensuring timely delivery to contractors, vendors.

5. Record payment details in the system and attach proof of payment to corresponding invoices.


4.5 Reconciliation

- Frequency: Daily, weekly and Monthly.

- Process:

1. Categorize multi-level company categories in QuickBooks.

2. Reconcile AP ledger balances with general ledger accounts.

3. Compare bank statements with payment records to ensure all disbursements are accounted for.

4. Investigate and resolve discrepancies promptly.

5. Submit reconciliation reports to the Head of Accounts or Controller.


4.6 Reporting

- Frequency: Weekly and monthly.

- Process:

1. Prepare aging reports to monitor outstanding subcontractor and vendor balances.

2. Generate payroll and all other payment history reports for internal and external audits.

3. Track and generate expenses history reports for internal and external control and audits.

4. Present AP performance metrics (e.g., average payment processing time, cash flow, etc.) to the finance team, keep all AP KPI’s up to date for presentation.


4.7 Compliance & Internal Controls

- Frequency: Ongoing.

- Process:

1. Adhere to internal policies for invoice approvals, payment thresholds, and documentation.

2. Ensure compliance with tax regulations, including withholding and sales tax obligations.

3. Conduct periodic internal audits to identify and mitigate risks.


4.7 Risk Mitigation

- Frequency: Ongoing.

- Process:

1. Identify risks such as duplicate payments, unauthorized invoices, or vendor fraud.

2. Implement controls such as segregation of duties and multi-level approvals.

3. Use system alerts to flag suspicious transactions for review.


5. Day-to-Day Activities

- Process incoming invoices and ensure timely approvals.

- Communicate with contractors and vendors to address inquiries or payment issues.

- Communicate with banks and other finance institutions to address any issues or inquiries.

- Prepare weekly payment batches and submit them for approval.

- Reconcile AP records and resolve discrepancies.

- Generate AP aging reports and provide updates to the finance team.


6. Performance Metrics

- Invoice Accuracy: Maintain an error rate below 98%.

- Payment Timeliness: Ensure 95% of payments are made within terms on a timely manner.

- Reconciliation Accuracy: Achieve 100% reconciliation with the general ledger each month.

- Employee/Contractor/Vendor Satisfaction: Resolve inquiries within 48 hours on average.


7. Reporting Structure

- Reports to: Head of Accounts, General Manager or Controller.

- Collaborates with: Subcontractors, vendors, employees, department heads, finance tea ---------- mbers, consultants, finance institutions and external auditors.


8. Communication Channels

- Internal:

1. Weekly updates with the Head of Accounts, General Manager or Controller.

2. Regular collaboration with the finance team on invoice approvals and reconciliations.

- External:

1. Respond to subcontractor and vendor inquiries via email or phone.

2. Coordinate with finance institutions and auditors for AP documentation during audits.


9. Emergency Procedures

- System Downtime: Notify management and IT and switch to manual processing procedures.

- Fraudulent Activity: Report suspected fraud to Heads of Accounts, General Manager or Controller immediately.

- Payment Errors: Contact the bank or payment processor within 24 hours to initiate corrections.


10. Tools & Systems

- Accounting Software: QuickBooks, OnPay, and/or similar.

- ERP Systems: SimPRO or equivalent.

- Banking Platforms: Online banking portals for payment disbursement.

- Document Management: SharePoint, Monday, and other platforms.