Managing vendor invoices is one of the most important responsibilities for an association accounting clerk. While processing an invoice may seem straightforward, accurate and timely invoice management plays a significant role in maintaining financial control, supporting vendors, preparing financial reports, and ensuring an association’s funds are used appropriately. 

For membership associations, invoice management can be more complex than in a typical business. Associations work with event venues, consultants, technology providers, professional services firms, printers, membership platforms, contractors, and other specialized vendors. They may also have multiple programs, committees, events, or departments that need to be tracked separately. 

This blog explores my top ten tips for managing vendor invoices. 

1. Establish a Consistent Invoice Process

The first step in effective invoice management is creating a standardized process for receiving, reviewing, approving, recording, and paying invoices. 

A typical process should include: 

  1. 1. Invoice received 
  2. 2. Invoice reviewed for accuracy 
  3. 3. Appropriate staff member or manager confirms the expense 
  4. 4. Account and department or project coding is assigned 
  5. 5. Invoice is entered into the accounting system 
  6. 6. Approval is documented 
  7. 7. Payment is scheduled 
  8. 8. Invoice and supporting documentation are filed 

 

Having a defined workflow reduces the risk of invoices being overlooked, duplicated, or paid without proper authorization. 

2. Verify Every Invoice Before Processing

Accounting clerks should carefully review invoices before entering them into the accounting system. 

Key information to verify includes: 

  • • Vendor name 
  • • Invoice number 
  • • Invoice date 
  • • Due date 
  • • Description of goods or services 
  • • Quantity and pricing 
  • • Applicable taxes 
  • • Total amount owing 
  • • Payment terms 
  • • Purchase order or contract information, where applicable 
  • • Appropriate internal approval 

 

Pay particular attention to unusual charges, duplicate invoices, or invoices for services that the association does not recognize. 

When something does not appear correct, it is better to resolve the issue before processing the invoice rather than correcting it after payment. 

3. Code Invoices Correctly

Accurate coding is essential because invoice information ultimately becomes part of the association’s financial records. 

Accounting clerks may need to assign invoices to the appropriate: 

  • • General ledger account 
  • • Department 
  • • Program 
  • • Event 
  • • Committee 
  • • Project 
  • • Funding source 
  • • Cost center 

 

For example, an invoice for conference catering should not simply be recorded as a general office expense if the association tracks conference costs separately. 

Consistent coding also makes it easier for management and the board to understand where association funds are being spent. Proper coding can also help your association better understand your Association’s Budget and Cashflows.  

4. Pay Attention to Taxes

Associations need to ensure that applicable taxes are handled correctly when invoices are recorded. 

Depending on the association’s location, tax requirements, vendor type, and the nature of the purchase, invoices may include GST, HST, PST, or other applicable taxes. In that sense, accounting clerks should follow the association’s established tax procedures and ensure that tax amounts are recorded consistently. 

If the tax treatment of an invoice is unclear, it should be reviewed rather than assumed. 

5. Monitor Payment Deadlines

Timely payment is an important part of maintaining good vendor relationships. It’s the responsibility of the accounting clerks to monitor invoice due dates and payment terms to help prevent: 

Late payment fees 

  • • Service interruptions 
  • • Vendor complaints 
  • • Loss of preferred pricing 

 

At the same time, invoices should not automatically be paid simply because they have reached the payment queue. Proper approval and verification should still occur before payment. 

6. Prevent Duplicate Payments

Duplicate invoices can occur for a variety of reasons. A vendor may resend an invoice because payment has not yet been received, or two employees may submit the same invoice.As mentioned in a previous section, before processing the invoice and entering it into the system, the data should be reviewed in detail to ensure that it is not duplicated and to avoid double payments. 

Accounting software may also have duplicate invoice warnings or controls that can assist with this process. However, software has its limitations; it is important to still do your due diligence to ensure that there are no duplicate entries and payments are not made. 

7. Maintain Organized Documentation

Proper documentation is particularly important for associations because financial records may need it to support management reporting, board oversight, audits, and regulatory requirements. These invoices should be stored in an organized system that makes them easy to retrieve. 

Supporting documentation may include: 

  • • Original invoice 
  • • Purchase order 
  • • Contract 
  • • Receipt 
  • • Email correspondence 
  • • Credit memo 
  • • Payment confirmation 

 

A consistent digital filing structure can save considerable time when an invoice needs to be located months later. This also ensures that all information is readily available to prepare the necessary financial statements. 

8. Handle Recurring Vendor Invoices Carefully

Many associations have recurring expenses such as software subscriptions, accounting services, insurance, office services, or membership technology. These recurring invoices can create a risk of automatic processing without adequate review. Accounting clerks should periodically confirm that: 

  • • The service is still required 
  • • The vendor agreement remains active 
  • •Pricing is correct
  • • The invoice matches the contract 
  • • The expense is still being charged to the appropriate account 

 

A recurring expense should not become “invisible” simply because it has been paid every month. 

9. Communicate With Vendors Professionally

Accounting clerks are often one of the primary points of contact between an association and its vendors. 

Professional communication is especially important when resolving: 

  • • Incorrect invoices 
  • • Missing information 
  • • Duplicate invoices 
  • • Payment questions 
  • •Account balances 
  • • Credit notes 
  • • Changes to payment information 

 

Prompt communication can prevent small invoice issues from becoming larger problems. 

It is also important to follow internal procedures when vendors request changes to banking or payment information. These requests should be independently verified before any changes are made. 

10. Reconcile Accounts Payable Regularly 

Invoice processing should not end when a payment is issued. 

Regular reconciliation helps ensure that the accounting records accurately reflect outstanding vendor obligations. 

Accounting clerks should review accounts payable reports for: 

  • • Overdue invoices 
  • • Unusual outstanding balances 
  • • Duplicate entries 
  • • Unapplied credits 
  • • Old invoices 
  • • Unexpected vendor balances 
  • • Payments that have not cleared 

 

Investigating unusual items promptly makes month-end and year-end reporting much easier. 

The Real Value of Invoice Management 

Effective vendor invoice management is about more than entering bills into an accounting system. For association accounting clerks, it is an important part of financial care. 

A well-managed invoice process helps associations maintain accurate records, control expenses, meet payment obligations, support vendor relationships, and provide reliable financial information to management and the board. 

By following a consistent workflow, verifying invoices carefully, maintaining strong approval controls, coding expenses accurately, and keeping organized documentation, accounting clerks can help create a more efficient and financially accountable association.