Accounts Reconciliation Blog

When I was growing up, I hated my accounting class. I figured why need accounting when I don’t plan to be an accounting. What I wanted to be was to become an entrepreneur. I wanted to become CEO of a top 500 company. I don’t need to learn accounting because I’ll have a room full of accountants doing my bidding. Boy was I wrong. If you plan to be in a business setting someday, you must learn and understand basic accounting concepts. Questions like what are accounts payable and how to do bank reconciliations should be basic knowledge for every businessman.

What are accounts payable? Accounts payable is money owed to a supplier. If someone did you a service or you bought something from someone or you’re paying rent or bills, this all goes to the accounts payable list. Now, the trick in business is to have a list that you can manage. You must pay all suppliers on time every time. If you don’t, you raise a red flag in their eyes and risk losing that particular supplier. Your supplier is your business lifeblood. It is the second most import business relationship you have. The most important business relationship is of course your relationship with client.