Accounts Reconciliation Blog

Accounting work is tedious and time consuming. In spite of this, accounting work is vital to business success. Like the saying goes, you can’t get from point A to point B if you don’t know where point A is. My point is, in order for your company to run properly and profitably, you must understand all aspects (marketing, sales and accounting) of your business. You, the entrepreneur, don’t have to be a licensed accountant but you do need to understand the basic concepts of accounting. Questions like “what is full cycle accounts payable” and “how to do bank reconciliations” are just some of the accounting jargon you will need to know.

What is full cycle accounts payable? Basically, it is covering all the bases before you pay someone. If your accounts payable list says you owe money to certain supplier and need to pay them soon, you start processing the paperwork for payment. You first check your PO if you really ordered. Next, you check if the item you ordered came to you via the original sales invoice. Check for discrepancies. If all is in place, then you prepare the check for payment. That in essence is full cycle accounts payable.