The sum of money your company owes to suppliers or vendors is called accounts payable. By checking your accounts payable, you can ensure that all bills have been appropriately recorded and that any past-due invoices have been paid.

Use these procedures to review your accounts payable:

• Generate an accounts payable aging report that shows how much is owed and for how long.
• Pay any overdue bills and record them appropriately.
• Consider negotiating with vendors to reduce outstanding balances.
• Reconcile any discrepancies between your accounting records and vendor statements.