Articles and updates on accounts payable automation, invoice processing and finance operations.
When to capitalize a purchase and when to expense it, the IRS de minimis safe harbor thresholds of $2,500 and $5,000, and how to write a capitalization policy.
Read articleWhat a vendor master file is, the fields it must hold, the controls that stop fraud and duplicate payments, and how to clean one up without breaking your payment run.
Read articleHow general ledger reconciliation works, a worked AP example, the accounts that break most often, and a close checklist a controller can hand to the team.
Read articleWhat a chart of accounts is, how to number it, a full example for a US business, and how to keep it clean once AP starts coding invoices against it every day.
Read articleSOX compliance explained: what Sarbanes Oxley Section 404 requires, which accounts payable controls auditors test first, and a practical checklist for controllers.
Read articleDelegation of authority matrix explained: how to set spend approval limits by role and dollar threshold, with an example DOA policy table and the invoice splitting loophole.
Read articleCash conversion cycle formula explained with a worked example: DIO plus DSO minus DPO, what a negative cycle means, and how payment terms move the number.
Read articleA vendor credit is money a supplier owes you back for a return, overcharge, or rebate. See how to record a vendor credit memo and apply it to the next bill.
Read articleA cash disbursement journal records every payment your business makes by check, ACH, or wire. See the standard columns, a worked example, and the entries.
Read articleAccrued liabilities are costs you incurred but have not yet paid or been billed for. See examples, the journal entry, and how they differ from accounts payable.
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