Do you think that supplier invoices are something that can be thrown around and just laying somewhere? Are supplier invoices obsolete once they’re paid? How do you handle them in order to achieve timely payment?

First and foremost, keeping accounting documents (that is all documents you’ve used for your accounting entries within your financial statements) for a certain required period can only be achieved if those documents are not just somewhere, but in a safe place. Normally the period you’re required to retain those documents is measured in years so think about that when choosing this place. 

Supplier invoices are definitely to be kept for the required period not only because you’re required to keep them, but you may actually be required to prove to authorities you’ve incurred such and such expenses (for tax purposes that is). Supplier invoices become obsolete once the period the authorities may come and check, is over.

Handling supplier invoices should from the get-go be very routine and structured. They ought to be referenced either by entries they’re used for, by dates they’re going to paid or some other method that’s easily understandable and efficient enough for quick finding of what’s needed. Moreover, they ought to be following a process which includes also strict places they’re stored within – initially, once they come in, secondly to ensure they’re paid in time and lastly, that they’re archived in a safe place. As I already mentioned, it’s not only ensuring handling is appropriate but also that they’re referenced appropriately.

Seeing a supplier invoice just laying somewhere (and without any reference on it) should raise an alarm of unpaid invoices, unaccounted expenses etc.