The Small Business Owner’s Guide to Accounts Payable Reconciliation

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You may not have anticipated needing a crash course in bookkeeping when you opened your business. You have many questions. One of the most common is how do you do accounts payable reconciliation?

Reconciling your accounts payable can be difficult, but it is fairly simple once you understand the process. There are many tools to help you as well, including a good payables platform.


Step One of Payable Reconciliation Is Matching Statements

When you receive invoices from your vendors, you should be checking them against your accounts payable. This is the first step in payable reconciliation.

One of the basics of good bookkeeping is ensuring you keep good records. Every time you make a purchase, you should record it in your accounts payable journal. Doing this in a timely manner helps you when the vendor statements arrive later.

If you use an accounting platform, most of the information about your purchases should be recorded within the system. This can make matching purchases and invoices to the vendor’s statements much easier.


The Balance of Your Journal

When you’re dealing with accounts payable reconciliation, you’ll need to be sure you’ve accounted for all invoices, payments, and purchases. Be sure to enter invoices into your system or record them in your AP journal.

If you’re using software, you can usually sort through entries by limiting the dates or even selecting a particular vendor. This will help you ensure you’re looking at transactions completed in the same timeframe as the vendor’s statement.


Getting a Helping Hand

Keeping the books is a time-intensive task, but it’s so important for your business. Many small business owners feel they have to complete the task themselves, often with no prior training. Even though accounts payable reconciliation can be relatively straightforward, it does take time. If you’re not sure how to complete the task correctly, it could lead to mistakes.

Luckily, there’s plenty of help available. One thing you can do, if you have the budget, is hire someone to assist you. A trained bookkeeper will help you minimize errors and be able to reconcile the accounts faster.

Another thing you can do is invest in the right payables platform. Some platforms have the capability of automatically reconciling payments you make to vendors. This can save you significant time and effort when it comes to seeing what you’ve already paid and what you still owe.


Make Bookkeeping Easier

As a small business owner, you have a lot on your plate. Keeping the books is an important task, but you may not have the time or know-how to get it done with ease. Think about the technology you use and the help you employ.

Getting the right help can make accounts payable reconciliation easier than ever before. Better bookkeeping is possible.

Disclaimer

The information in this article is for educational and information purposes only and should not be relied upon for decision making. Always seek the expertise of a professional advisor or accountant prior to making any decisions.

Paul Chappel

As Vice President, Partner Success, Paul heads up partner relationships, developing, fostering, and supporting WayPay’s growing set of strategic alliances. With 20 years of experience in financial services and lending, Paul brings industry-leading insight into the team to help strengthen our product offering for clients. His coaching, support, and leadership of the sales team ensure that our clients are kept up-to-date with not only the latest WayPay product offerings but also industry and SMB best practices.