Receivables and payables need clear ownership
A good system should show who owes the business, whom the business owes, why the balance exists, when it is due and which transaction created it.
Useful controls
- Customer and supplier statements
- Partial and full settlements
- Due dates and aging buckets
- Opening balances with documented sources
- Payment approvals for supplier liabilities
- Links to invoices, receipts, payments and journals
Management reports should reconcile to the accounting ledger rather than maintain an independent balance.