This Bachelor’s Thesis investigates incoming invoice handling at accounts payable. The case company, BoXshipping AB, presents itself as an international logistics service provider, which operates worldwide. Invoice handling in case company was never optimized with a plan based on accounting theory or leading accounts payable and invoice handling practices. This fact brings an opportunity for the case company to improve the internal accounting operations and create strong background for future development in this field.

The research method, which was used in this thesis, was qualitative case study. Case company’s invoice handling was assessed and analysed with the usage of relevant accounting literature review and qualitative research. The literature survey consisted of accounts payable and invoice handling practice topics. Qualitative research included data from semi-structured interviews with company representatives and method of direct participating observation. Semi-structured interviews were held with accounting department and operations department representatives. Direct participating observation was held in case company’s operations department where actual invoice handling happens.

This thesis suggests incoming invoice handling optimization plan that will help the case company to overcome current challenges as well as improve internal operational accuracy and efficiency. The plan consists of several steps and aims to eradicate weaknesses of current handling system.