Accounts Payable Checklist

Sweep the ap@ shared inbox, Bill.com inbox, and any vendor portals (Coupa, SAP Ariba) the company is invited to. Forward paper invoices to the OCR address so Hubdoc or Dext picks them up. Date-stamp the receipt date — late-date discounts (2/10 net 30) are calculated from receipt, not invoice date.

Confirm the legal vendor name matches the W-9 on file (not a DBA), the invoice number isn't a duplicate of one already in the system, and the amount ties to what was quoted. Duplicate detection in QBO/Bill.com flags exact matches but misses leading-zero and dash variations — eyeball the recent vendor history.

Three-way match: PO line items + quantities, receiving report (proof of delivery), and invoice line items. Tolerance thresholds typically allow 5% or $50 variance; anything above kicks back to the buyer for a PO change order before posting.

Code to the natural account (e.g., 5410 Software Subscriptions), department class, and location dimension. Resist the temptation to dump unfamiliar items into 'Ask My Accountant' — that suspense account becomes a partner question every close. If you don't know the GL, ask the requester before posting.

Apply the approval matrix: under $1K = manager; $1K–$10K = department head; $10K–$50K = controller; over $50K = CFO. Bill.com and Ramp enforce this with workflow rules — keep the matrix in sync with the policy doc when delegations of authority change.

Common exceptions: quantity short-shipped, price off PO, freight not on PO, sales tax missing on a tax-exempt vendor. Document the resolution path on the invoice memo so the auditor can trace it next year.

No W-9, no payment — this is the only reliable way to avoid a January 1099 scramble. Capture box 3 entity type (sole prop, LLC single-member, S-corp, C-corp, partnership) because that drives 1099-NEC eligibility. Corporations (except attorneys and medical) are exempt.

Run the name/TIN combination through IRS e-Services TIN Match before activating the vendor. Mismatches trigger CP2100 notices and 24% backup withholding obligations a year later — easier to fix on intake than on a 1099-NEC correction.

Set the Track for 1099 box, default expense account, payment terms (Net 30 unless negotiated), and remit-to address. If the vendor is foreign, swap the W-9 for a W-8BEN / W-8BEN-E and flag for 1042-S reporting instead.

Sort by due date and discount-available. Capture 2/10 net 30 discounts before they expire; defer past-due-OK vendors if cash is tight. Confirm cash position with the controller before committing to a run over the daily ACH limit.

ACH for routine domestic vendors (cheapest, 1–3 day settlement). Wire for over-$50K, time-sensitive, or international (same-day, $25–$45 fee). Virtual card / Bill.com Pay By Card for vendors that accept it (rebate revenue). Paper check only when vendor refuses electronic — getting rare.

Separation of duties: the person who entered the bills cannot release the payment. Controller reviews the proposed run report — vendor list, totals, exception items — and approves before funds move. This is the key SOX-style control auditors test.

If the run includes paper checks, upload the positive pay file (check number, payee, amount) to the bank portal the same day. The bank rejects any check presented that doesn't match the file — primary defense against check fraud.

For top vendors and any with statement balances, tie the vendor's open-items list to your AP aging detail. Differences usually reveal: missed invoices in your inbox, payments applied to the wrong invoice, credit memos not booked, or duplicate billings.

AP aging total must equal GL account 2000 (Accounts Payable) at period end. Differences come from journal entries posted directly to AP without a vendor (a no-no) or timing on payments-in-transit. Document any reconciling items in the close binder.

Cutoff testing: invoices received in the first two weeks of the new month for goods/services delivered in the prior month get accrued back. Reverse the accrual on day 1 of the next period so it doesn't double up when the actual invoice posts.