Accounts Reconciliation Blog

Accounting work is tedious and time consuming. It also requires lots of paperwork. In order to get paid you need the P.O., sales invoice and delivery receipt. Or if you plan to reimburse something, you’ll need an official receipt. Sometimes though, you can get reimbursed or paid with nothing to show. Take for example per diem or allowance.  Accounts payable allowance or per diem can be paid with little or no paperwork.

Allowances are paid even without a receipt. It is an agreed upon price to cover living expense.  It usually covers food and lodging. For example, your company might have a $100 a day allowance or per diem policy for out of town trips. You have a seminar for 5 days. Your company therefore will release $500. Often no receipts are necessary. It will just be listed as accounts payable allowance and paid outright to you.