What is three way matching in accounts payable?

Three way matching is the process of verifying that a purchase order, a receiving document, and a vendor invoice all agree with each other before a payment is approved. This prevents overpayments, duplicate payments, and vendor billing errors.

How does outsourcing accounts payable work?

When you outsource accounts payable to OB Bookkeeping, we collect all incoming invoices, record them in your bookkeeping system, track due dates, and process payments upon your approval. You stay in control of payment decisions while we handle all record keeping, tracking, and reporting.

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Accounts Payable Services

Every invoice tracked. Every vendor paid on time. One fixed monthly price.

Your business receives invoices every month. Some from vendors. Some from suppliers. Some from service providers you depend on.

Every single one needs to be recorded, tracked, and paid on time. Miss one and you get a late fee. Miss several and you damage the vendor relationships your business depends on. Leave the records disorganized and you walk into tax season with a problem.

OB Bookkeeping manages accounts payable for small businesses across the United States. We handle every invoice from the moment it arrives to the moment it is paid and recorded. You stay focused on your business. We keep your AP clean and current every month.

What Is Accounts Payable?

Accounts payable refers to the money your business currently owes to vendors and suppliers for goods or services already received but not yet paid. It is recorded as a current liability on your balance sheet.

Every vendor bill, supplier invoice, or service fee sits in your accounts payable until payment is made.

When managed properly, you always know what you owe, when it is due, and how much cash needs to be available to cover upcoming payments.

When ignored or poorly managed, late fees accumulate, vendor relationships break down, and your books stop reflecting reality.

What Happens Without Proper AP Management

Most small business owners track vendor bills informally until something goes wrong. Here is what we see regularly when AP management is missing:

Invoices paid twice by accident

Invoices missed entirely and forwarded to collections

Payments made without invoice verification

Tax returns that do not reflect actual business expenses

Cash flow surprises because upcoming payments were never tracked

These problems do not appear all at once. They build quietly over months. By the time they are visible, fixing them is expensive and time consuming. Proper monthly accounts payable management prevents every one of these problems before they start.

Our Monthly Accounts Payable Process

Step 1: Collect

We gather every invoice and vendor bill received during the month.

Step 2: Record and Categorize

Each invoice is entered into your bookkeeping system with the correct vendor name, amount, due date, and expense category.

Step 3: Verify

We verify each invoice against purchase orders and receipts before any payment is approved.

Step 4: Track Due Dates

We monitor all upcoming payment deadlines so nothing is ever missed.

Step 4: Process Payments

Payments are made upon your approval, recorded accurately, and matched to the original invoice.

Step 4: Reconcile and Report

We reconcile your AP ledger at the end of every month and deliver a clear summary of what was paid, what is outstanding, and what is coming due.

Everything Included in Your AP Service

Every month we take care of:

All vendor invoice collection and entry into your bookkeeping system

Payment due date tracking across all vendors

Invoice verification before any payment goes out

Three way matching of purchase orders, receipts, and invoices

Vendor account reconciliation

Accounts payable aging report so you always see what is outstanding

Full monthly AP ledger for tax filing and audits

Coordination with your bank reconciliation for accurate month end books

Who This Service Is Built For

Small business owners managing too many vendor bills to track manually

Companies with recurring monthly vendor relationships

Businesses that have experienced missed payments or late fees before

Owners who want clean and organized AP records for tax season

LLCs, sole proprietors, and S Corps that need structured financial records

Businesses on QuickBooks Online, Xero, or Wave

Why OB Bookkeeping

We are a dedicated bookkeeping team built for small businesses and focused on keeping your records accurate and organized every month.

Fixed monthly pricing

One price. No hourly rates. No surprise charges. You know exactly what AP management costs before the month begins.

Fully Remote

We work with businesses across the United States entirely online. You share your invoices. We handle everything else.

Consistent every Month

Your accounts payable is managed on schedule without reminders or follow up from you.

Work with existing platform

We work inside QuickBooks Online, Xero, Wave, and other major platforms. No new software required. No disruption.

Get Your Books Reconciled Starting This Month

Stop guessing what your numbers mean. Get clean, accurate, reconciled books delivered every month at a fixed price.

What is accounts payable in simple terms?

Accounts payable is the money your business owes to vendors and suppliers for things you have already received but have not yet paid for. Every unpaid invoice in your business is part of your accounts payable until it is settled.

Is accounts payable a liability or an asset?

Accounts payable is a liability. It represents an obligation your business has to pay money to others. It appears on the liability side of your balance sheet and reduces as invoices are paid.

Is accounts payable a debit or credit in bookkeeping?

When you receive an invoice, accounts payable is credited because the liability increases. When you pay the invoice, accounts payable is debited because the liability decreases. This is standard bookkeeping practice.

What is accounts payable turnover?

Accounts payable turnover is a ratio that measures how quickly a business pays its outstanding invoices over a given period. A higher turnover means faster payments to vendors. Tracking it monthly helps you understand your payment efficiency and cash flow position.

What is the difference between accounts payable and accounts receivable?

Accounts payable is money your business owes to vendors. Accounts receivable is money customers owe to your business. Payable is a liability. Receivable is an asset. Both appear on your balance sheet and directly affect your monthly cash flow.

What is three way matching?

Three way matching is a verification step in accounts payable where a purchase order, a receiving report, and the vendor invoice are all compared to confirm they agree before payment is released. It prevents overpayments, duplicate payments, and unauthorized charges.

Can you help if my AP records are disorganized or months behind?

Yes. OB Bookkeeping offers full catch up bookkeeping for businesses that have fallen behind. We sort through outstanding invoices, identify missed payments, reconcile vendor accounts, and bring your records fully current before we begin regular monthly management.

Do you handle AP for businesses with multiple vendors?

Yes. We manage accounts payable across all vendors and suppliers your business works with under one fixed monthly price.

Stop Letting Vendor Invoices Pile Up

Disorganized accounts payable costs your business in late fees, damaged vendor relationships, and inaccurate financial records.

OB Bookkeeping keeps your AP clean, current, and organized every month at a price you can plan around.

Odishelidze Bookkeeping provides bookkeeping and financial record-keeping services. We are not a CPA firm and do not provide tax, audit, or advisory services. We prepare your books so your CPA or tax preparer can do their job.