Written by Maria Acosta, HKA Bookkeeping Associate
Precise information on accounts payable is essential to producing accurate reports.
Cleaning up your accounts payable (AP) will give you better visibility of your outstanding bills, improve the relationships with your providers, and also helps to avoid overdue charges or penalties to be paid for the dues.
A smooth process in accounts payable starts by using efficient and effective accounts payable software that will help you keep your AP on track.
Bill.com is an account payable online software that offers an efficient way to:
- Pay vendors
- Apply credits
- Helps to keep track of overdue invoices
- Syncs with your Accounting software
- Offers an easy way to import invoices, no manual entry required and gives you more control over overpayments
Bill.com, like any other software, requires the record of accurate data to provide precise information.
So how can you clean up your Bill.com AP?
- Make sure suppliers’ information is up to date to avoid sending payments to the wrong vendor
- Make sure all invoices are uploaded to Bill.com
- Review invoices received and their age. Make sure they are legit, and the amount is accurate
- Make certain credits from vendors are applied to Bill.com
- Make sure your invoices are coded to the correct expense account
- Make sure your bill.com and your accounting software sync correctly. If any sync errors are found, correct sync errors and sync bill.com to your accounting software
Review and compare your AP balance from Bill.com and your AP balance in your Accounting software.
An adequate system of cleaning and monitoring AP gives you a better understanding of your expenditures and enables better administrative decisions.