Accounts Payable Management

We Process Bills For Payment For You

While we are happy for you to manage your own bills payable, it can often save BOTH of us time by letting us manage bills payable remotely or onsite.

When we manage your bills payable we avoid back tracking, continually asking for copies of invoices or receipts paid, and all those missing invoices, delaying bank reconciliation which interferes timely reports, compliance, and lodgement deadlines. Plus costs you money in time to repeatedly request them.

When we process bills for payment we help your business:

  • Comply with taxation obligations such as; subcontractor TPARs, GST and BAS.
  • Produce timely accurate reports.
  • Avoid double handling.
  • Assist with cashflow.
  • Keep your creditors happy by paying your bills on time.
Accounts Payable Management

How we work with you:

  1. Set-Up Systems to process bills payable. Such as:
    • an email address dedicated to accounts, you approve bill for payment and forward to us for processing.
    • e-invoicing. What is e-invoicing? E stands for Electronic, electronic invoices are automated, received as bills by trade partners to or sent from your accounting software, saving time and improving control.
  2. Provide you with a list of bills due for payment and cashflow.
  3. You check-list and advise bills to be paid.
  4. Process bills payable to bank for you to authorise payment.

To improve speed, compliance and control of accounts payable, we use software shortcuts, e-invoicing and weigh up cost of addon software like DEXT.

Check out our:  Policy and Procedure on Accounts Payable Management using Xero.

 

Trade Creditors| Accounts Payable | Bills Payable |Supplier Accounts – all mean the same.

It is an area in accounting software that can keep track of Trade Partner invoices that come in to be paid, you can keep copies of your invoices here, see dates, amounts, invoice numbers, check off the invoice numbers with end of month supplier statements. Many business reports can be produced when using the trade creditor account, it helps form budgets and improve cashflow. It can be used for both cash accounting and non-cash accounting (accrual accounting).

DIY Warnings

  • When reconciling bank feed transactions be careful to apply the bank feed to the bill payable, if you use spend money you have bypassed the Trade Creditor Control Account and will have left the bill unpaid.
  • ALWAYS! Use the exact invoice number the supplier supplied on the invoice ‘copy type’. This helps you identify exactly which invoice you are paying and prevents duplication as the accounting software (should) warn user of duplicate invoice number at the time of processing. If it has four 0000 in front of a number ‘type them’, consistency helps prevent duplication and double payment.
  • Supplier Card Files: Only have 1 card file per trade partner account (supplier account, account number), yes just 1. If you have more than one it is fixed by merging or inactivating. Why? Because the accounting software system cannot warn for duplicate invoice number entered under another card file as it thinks it is a new account.
  • Check the total invoice payable amount in the software to see if it agrees with the suppliers invoice before approving to payables. If it does not agree, and you are registered for GST the ‘Tax Inclusive’ or ‘Tax Exclusive’ tick might be on or off.
  • Suppliers not registered for GST are NOT reported on your BAS Statement. DO NOT code theses as GST Free supplies! In Xero they are coded as ‘BAS Excluded’ MYOB ‘N-T’ (No-Tax).  If your Tax Agent or BAS Agent coded these as GST Free it is wrong DO NOT copy them.
  • Supplier invoices not registered for GST should not say Tax in front of Invoice until they are registered to collect GST.
  • ABN Australian Business number must be on all invoices. It is an 11-digit number. The payer must check the ABN is registered to the business before paying the invoice. If an ABN is not provided, the payer may need to withhold an amount from the payment for that supply, referred to as  ‘no ABN withholding’.
  • All invoices need to show the ABN that is registered to the business.
  • The business is responsible to check suppliers have given you an ABN registered to their name, and are registered to charge GST before you can claiming the GST imputation credit. How to check if a suppliers ABN and GST Status? Go to Australian Business Register ABN Lookup.
  • Paying for goods or services from a person deemed as a hobby?  You will need to withhold money for No ABN if the person does not supply you Statement from Supplier form, found here.

 

For Bookkeeping and BAS related support