Non-Profit accounting: Vendor Files

As a nonprofit auditor in North Carolina I often encounter incomplete vendor files and vendor on-boarding procedures. A file should be set up for each vendor the organization uses to procure goods or services. A miscellaneous file is acceptable for vendors not used on a regular basis. The vendor invoices can be filed alphabetically in the vendor file or chronologically by month. We will discuss the advantageous of each method later. The vendor file should contain any cont