When companies are recording payments, it might make the most sense to run ACCOUNTS PAYABLE reviews more frequently than once or twice monthly, to keep better control of invoice due dates and to pay those invoices when they’re due and not before. The smaller the business, however, the more difficult this may be. At the very least, vendors should be paid on a timely basis and as regularly as possible.

No matter what the payment plan, the steps to follow usually will be the same from an accounting standpoint:

• Identify the invoices needing payment.
• Print the checks.
• Assemble the checks and invoices for review and signing.
• Sign and mail the checks.
• File supporting invoices and documentation in the appropriate batch.
• Post the amount paid to individual vendor accounts.
• Post the transaction to the ACCOUNTS PAYABLE subledger.
• Summarize the subledger to the general ledger.