Account Payable & Vendor Reconciliation
In accounting, accounts payable (AP) refers to money owed to vendors or suppliers for goods or services acquired on credit.
Vendor reconciliation refers to the reconciliation of a vendor’s account with the statement provided by the vendor and the balance maintained with the entity’s system.
Vendor reconciliation is intended to highlight issues between one’s vendor account balance and balance in company’s books. With this periodical reconciled report, vendor queries can be reduced, control over vendor expenses can be improved, and good relationships with vendors can be maintained.
For any companies with multiple vendor and high volume of transactions, periodical reconciliation of their accounts becomes important to avoid any conflicts at later point of time/FY end.
It helps in identifying any mistakes (on either side) in accounting and initiates corrective action to ensure both accounts match periodically with signoff.
Pro-Team Solutions is mindful of all the challenges that arises in reconciling the vendor account and offers its client complete solution to ensure effective Vendor management and overall relationship with them thereby ensuring company overall operations are running smoothly.
Some of Our Offerings in AP and Vendor Reconciliation Services:
Pro-Team Vendor Help Desk benefits the organizations in tracking down each vendor’s invoice as it commutes to different departments of the company for approval while scrutinizing the basic audit checks and SLA committed to the supplier for payment.
Vendor master validation is basically a process that certifies a supplier as a legal entity and certifies its authenticity wrt GST registration for input, banking details and other relevant compliance requirements. It saves the organization’s finance by assuring that you are not associating with fraudulent vendors and that your present vendors have not been renamed, migrated, or left the business.
Vendor Invoice processing is automated based on nature of transactions and periodicity with a set of checkpoints and generation of automated payment advice for better clarity and accounting at both ends.
Invoice verification is performed to ensure completeness of work/services and compliance with the rates and other checkpoints and supporting documents. This is forwarded to the bill booking team to book and process payments once it is found satisfactory. However, the invoice will get rejected in case of any deviation, with remarks to the vendor for corrective action.
The vendor’s balance confirmation matches the vendor’s account balance with the balance maintained by the company’s book with a signoff. A periodical confirmation and signoff ensure that there will be no disagreements about accounting and payment entries in either book and no unaccounted bills for services rendered/supplies made up until that time. A mutually agreed balance and documentation are achieved by discussing, highlighting, and correcting any disputes/reconciliation requirements.