Third Party Bill Payment Service Usage

The article will address basic bookkeeping concerns to think about when utilizing a 3^rd party (outsourced) bill payment service (such as Bill.com).

To begin, a 3^rd party bill payment service can be a most convenient tool or service for your business, especially if it integrates directly with your bookkeeping software, such as QuickBooks Online.

However, like all bookkeeping endeavors, care must always be taken when engaging in tasks that affect your finances.

So, here are some things to think about prior to utilizing a 3^rd party bill payment service:

• Approval Limit: What is the dollar amount Accounts Payable approval limit set for each employee of your business? The higher the dollar amount of the bill, the more individuals (up the chain) should be needed to approve of that bill.
• Approval Process: Who is the typical employee that actually posts your bills and then processes that actual bill payments once the appropriate approvals are obtained? You want a convenient process but one that will pass a 3^rd party audit for proper cash controls for your business.
• Categorization: How knowledgeable is your bill-entry employee of your chart of accounts? The bill-entry employee should, at the very least, but trained in the following:
  • Income Statement accounts vs. Balance Sheet accounts.
  • If unsure where to categorize, then just post to “Uncategorized Expenses”.
• Sync Master Settings: If your 3^rd party AP payment software syncs directly with your bookkeeping software, be sure you have a thorough understanding of what happens to your books once your press the “Sync” button. Be sure to review your Sync Settings/Preferences prior to actually syncing your two systems.

Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.