Why we reconcile vendor statements was discussed in my previous article. While the benefits may be appealing, it can be an onerous task to match thousands of supplier invoices and other documents every month. Manual matching of statements may involve much printing and ticking, or system downloads and manipulation to produce many disparate Excel spreadsheets.
Vendor payments account for the largest cash outflow in most organizations. One of the best ways for accounts payable managers to sleep easily at night is reconciliation of vendor statements. While the benefits are numerous and discussed below, this task is often overlooked as it can be time consuming and tedious. An effective process for reconciling vendors must therefore be used.