How accounts payable usually works
A reliable AP process starts with a short review: your software stack, approval needs, cash cycle, supplier mix and any backlog. From there, the work typically runs in three phases.
1) Quick triage – Stabilise urgent payments, clear the immediate queue, fix obvious coding errors and communicate with critical suppliers.
2) Process setup – Configure bill capture (Dext/Hubdoc/EzzyBills/email), purchase orders if needed, approval rules and user permissions, bank feeds, supplier onboarding, default GST settings and ABA file formats with your bank.
3) Ongoing cycle – Weekly bill processing, GST checks, payment run prep, approvals, remittance advice, supplier statement reconciliation, aged payables review, and month‑end tie‑outs to the balance sheet and BAS.
- Optional controls: three‑way match (PO, bill, receipt), spend limits, and dual approvals for sensitive vendors.
- Reporting: aged payables, projected cash needs, and exceptions (duplicates, missing tax invoices, out‑of‑policy spend).
Australian context to keep in view
- GST and BAS: Correct coding on bills drives BAS accuracy. We validate GST on tax invoices and check ABN/GST registration when appropriate.
- ABA payment files: Most Australian banks support ABA files for secure batch payments while you retain final authorisation.
- TPAR (contractors): If applicable (e.g., building and construction), tag contractor payments for the Taxable Payments Annual Report.
- Payment terms: Balance supplier terms, early‑payment discounts and cash flow. Use approvals to prevent off‑policy spend.
- Audit trail and fraud control: Segregate duties, restrict bank access, require two approvals for new or changed supplier bank details.
What to compare before you commit
Scope
Ensure the proposal covers capture, coding, approvals, payment runs (ABA), remittances, supplier statements, month‑end reconciliations and reporting. Confirm backlog cleanup if needed.
Software fit
Look for depth in Xero/MYOB/QBO plus Dext, Hubdoc, EzzyBills, Lightyear, and ApprovalMax. Ask for examples of approval design and audit trails.
Turnaround and communication
Clarify processing days, approval cut‑offs, payment run cadence, escalation paths and how urgent vendor payments are handled.
Security and controls
Check user permissions, two‑person approvals, supplier change controls, bank authorisation setup and document retention policies.
Commercial fit
Compare fixed vs hourly pricing, reporting depth, meeting rhythm and whether you need compliance only or advisory (cash flow, vendor terms, spend analytics).
Typical deliverables
- Supplier onboarding and verification (bank details, ABN/GST status where relevant).
- Capture and code all bills with supporting documents and GST checks.
- Purchase order and multi‑level approval workflows with clear limits.
- Scheduled payment runs and ABA files; you retain final bank approval.
- Remittance advice, vendor queries and supplier statement reconciliations.
- Aged payables, cash requirements, and exceptions reporting each cycle.
- Month‑end reconciliation to the balance sheet and BAS support.
Best next steps
List your current AP pain points (late fees, missing invoices, approval bottlenecks, cash squeeze, backlog). Note your software and bank, approval needs, and any supplier priorities.
Decide whether you also need related services like accounts receivable, bank reconciliation, bookkeeping clean up, or BAS agent services. This helps define scope and timelines.
Share that context via the form below. We’ll map a right‑sized accounts payable workflow and suggest providers that fit your software, budget and control needs.
Frequently asked questions
What does accounts payable include?
End‑to‑end AP covers bill capture, GST coding, purchase orders, approvals, ABA payment runs, remittance advice, supplier statement reconciliations, and month‑end reporting aligned to BAS.
Which software do you support?
Xero, MYOB and QuickBooks Online are common, with Dext, Hubdoc, EzzyBills or Lightyear for capture and ApprovalMax for approvals. We’ll work with what you have or recommend a fit‑for‑purpose stack.
How do I keep control of payments?
You approve payments in your bank. We prepare payment runs and ABA files, but final release stays with authorised signers to maintain segregation of duties and reduce fraud risk.
How fast can you start?
Basic AP can be live within 5–10 business days. If there’s a backlog or a software change, we triage urgent suppliers first and finalise process design immediately after.
Is AP different to accounts receivable?
Yes. AP manages what you owe suppliers; AR manages what customers owe you. If you need both, see our accounts receivable services.
How does AP affect BAS?
Correct GST coding on bills flows to BAS. We check that tax invoices meet ATO rules, verify GST treatment as needed, and reconcile payables to the balance sheet each month.
Can you help with contractors and TPAR?
Yes. We can tag contractor payments and prepare the Taxable Payments Annual Report where your industry requires it.