Key takeaways
What this article covers, in order:
- The problem with "whoever gets the email pays it"
- Step 1: one inbox for every bill
- Step 2: enter bills when they arrive, not when you pay them
- Step 3: approval by the right person
- Step 4: a weekly bill run
- Step 5: match the payments in the bank
A good accounts payable process for a small team has five steps: get every bill into one place, enter it, have the right person approve it, pay it in a regular bill run, and match the payment in the bank. Who does each step matters more than which software you use. Below is a setup that works for a team of three to fifteen people, with a worked bill run.
The problem with "whoever gets the email pays it"
Sophie and her business partner Dev run a plumbing business in Bendigo with four staff. Until recently, bills went everywhere. Some went to Sophie's email, some to Dev's, some were handed to an apprentice at the supplier's counter and ended up in a ute door.
The result was predictable. A materials invoice got paid twice. The equipment hire company sent a final notice for a bill nobody remembered. And every month-end, Sophie spent an evening trying to work out which bank payments matched which bills.
None of this is unusual. It's what happens when bills don't have a process.
Step 1: one inbox for every bill
Set up a single email address for supplier bills, something like accounts@ your domain, and tell every supplier to use it. Update it on your supplier accounts. Put it on your purchase orders.
For paper bills and counter dockets, agree one place they go: a tray in the office, or a photo emailed to the same inbox by the end of the day. The rule is simple. If it's not in the inbox, it doesn't exist.
Step 2: enter bills when they arrive, not when you pay them
Enter each bill into your accounting software as soon as it arrives, with:
- Supplier name
- Bill date and due date
- Supplier's invoice number (this is what stops double payments)
- Amount, with GST coded correctly (your BAS agent or accountant handles lodgement; they just need clean coding)
- The account it belongs to: materials, subcontractors, vehicle costs and so on
- A note or job reference if the team works across several jobs
Entering bills on arrival means your payables report is always current, your profit isn't overstated, and you can see what's due next week.
Step 3: approval by the right person
For a small team, approval doesn't need to be bureaucratic. It just needs to be clear. A simple set of rules:
| Bill type | Who enters | Who approves | Notes |
|---|---|---|---|
| Regular overheads (rent, phone, software) | Office admin | Nobody, if amount matches last month | Flag if it changes |
| Materials under $2,000 | Office admin | Person who ordered | Check against the docket or PO |
| Materials $2,000 and over | Office admin | Owner | Check pricing against the quote |
| Subcontractors | Office admin | Owner | Confirm work is complete |
| Anything unusual or new supplier | Office admin | Owner | Check ABN and bank details |
The person who approves should be the one who knows whether the goods arrived or the work was done. The owner doesn't need to approve the phone bill every month.
One rule that's worth being strict about: a change to a supplier's bank details is never approved from an email alone. Ring the supplier on a number you already have and confirm it. Fake "we've changed banks" emails are a common scam, and small businesses are a favourite target.
Step 4: a weekly bill run
Paying bills whenever they're approved sounds efficient, but it means someone logging into internet banking every day and nobody having a clear view of cash. A weekly bill run is calmer.
Pick a day. Sophie and Dev chose Thursday. Every Thursday morning, the office admin pulls up bills due in the next seven days, the owner checks it against the bank balance, and payments are made from internet banking as one batch.
Here's their bill run for Thu 12 Nov 2026:
| Supplier | Bill no. | Due | Amount | Status |
|---|---|---|---|---|
| Plumbing supplies wholesaler | 88412 | 14 Nov 2026 | $3,245.00 | Approved, pay |
| Equipment hire company | H-2290 | 15 Nov 2026 | $880.00 | On hold |
| Accounting firm | 1027 | 16 Nov 2026 | $1,650.00 | Approved, pay |
| Phone and internet | 5561-10 | 17 Nov 2026 | $189.00 | Approved, pay |
| Fuel card account | Oct 2026 statement | 18 Nov 2026 | $642.35 | Approved, pay |
| Total due | $6,606.35 | |||
| Less on hold | -$880.00 | |||
| Paying this run | $5,726.35 |
The equipment hire bill is on hold because it charges four days and the team only had the trencher for three. Dev has asked the hire company for a corrected bill. Putting it on hold, rather than just not paying it, means it's still visible and won't be forgotten.
Step 5: match the payments in the bank
After the bill run, four payments leave the bank. When they come through your bank feed or statement, each one should match to one bill. Because the bills were already entered with their amounts and supplier names, matching is mostly a matter of confirming.
This is also where you catch problems: a payment that went to the wrong supplier, a bill paid that should have been on hold, or a double payment. Catching it the same week is a phone call. Catching it in six months is a headache.
A few small-team traps
- Paying from the statement instead of the invoice. Supplier statements are useful for checking, but pay against invoices so each payment links to a specific bill.
- Two people with bank access and no communication. If both owners can pay bills, agree that only the bill run pays them.
- Credit card bills nobody enters. Software subscriptions on the card are bills too. They just get paid differently.
- No supplier invoice number. Without it, the same bill can be entered twice. Treat it as required, even if your software doesn't.
How HelloBooks helps
Bills and supplier records are available on the Free plan (A$0, no card, no expiry), along with an AP (payables) ageing report that shows what's due and what's overdue. Bills & approvals is a Pro feature (A$30/month), along with unlimited users and roles, so your office admin, the owners and your bookkeeper can each have the access that suits their part of the process.
HelloBooks doesn't send payments; you pay from your own internet banking as usual. When those payments come through your connected bank account or a CSV statement import, the reconcile screen suggests a match for each line with a confidence score and reason, and you confirm or change it. On the Business plan (A$120/month), an audit log records who did what. See plans and pricing and bookkeeping features.
FAQs
How often should a small business pay supplier bills?
Weekly or fortnightly bill runs work well for most small businesses. You pay on time, you see cash clearly, and you're not logging into the bank every day.
Should I pay bills early?
Only if there's a discount for doing so or a relationship reason. Otherwise, paying on the due date keeps cash in your account longer without upsetting anyone.
Who should approve bills in a small business?
The person who knows whether the goods or services were received. Keep the owner's approval for large amounts, new suppliers and anything unusual.
What's the best way to avoid paying a bill twice?
Enter every bill with the supplier's own invoice number, and pay only from your list of approved, unpaid bills. Then match each payment to its bill when you reconcile.
What should I do if a supplier emails new bank details?
Don't change anything based on the email. Call the supplier on a phone number you already have on file and confirm the change before paying.
A bills process doesn't need to be clever. It needs one inbox, clear approvers and the same day every week.
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