Key takeaways
What this article covers, in order:
- The bill that got paid twice
- The five stages
- Stage 1: one front door for bills
- Stage 2: enter bills as they arrive, not when they're due
- Stage 3: approvals that don't slow everything down
- Stage 4: a weekly payment run
A good purchase ledger process (the workflow for supplier bills) has five steps: bills arrive in one place, get entered in your books, get approved by the right person, get paid in a planned weekly run, and get matched to the bank payment. Small teams don't need anything elaborate. They just need everyone to know which step a bill is at and who's responsible for moving it on.
The bill that got paid twice
Dev runs a small events company in Birmingham with five staff. A lighting supplier emailed a £1,860 invoice to Dev, and posted a paper copy to the office. Dev paid the emailed one from his phone. His office manager, Leanne, paid the paper one in the Friday payment run. Nobody noticed for six weeks, until the supplier's statement showed a £1,860 credit.
They got the money back. But it was the third time that year something similar had happened, and every time the cause was the same: no single place where bills lived, and no clear rule about who paid what.
The five stages
| Stage | What happens | Who usually does it |
|---|---|---|
| 1. Capture | Every bill goes to one inbox or folder | Anyone who receives a bill |
| 2. Enter | The bill is recorded in the books with supplier, date, due date, amount and category | Bookkeeper or office manager |
| 3. Approve | Someone with budget authority confirms it's genuine and correct | Owner or budget holder |
| 4. Pay | Approved bills go into a scheduled payment run | Owner or finance person |
| 5. Reconcile | The bank payment is matched to the bill it paid | Bookkeeper |
The names in the right-hand column will vary. The point is that each stage has an owner.
Stage 1: one front door for bills
Pick one address, something like bills@ or accounts@ your domain, and tell every supplier to use it. Update it on your purchase orders and in your supplier set-up emails. Paper bills get scanned or photographed and forwarded to the same place.
Staff who receive a bill directly forward it, then delete their copy. That last bit is what stops the double payments.
Stage 2: enter bills as they arrive, not when they're due
Entering a bill the day it arrives does two useful things. Your aged creditors report becomes accurate, so you know what you owe. And your P&L shows costs in the right month, which matters if you're trying to understand profit.
When you enter a bill, capture:
- Supplier name (pick the existing record; don't create "ABC Ltd" and "ABC Limited")
- Bill date and the supplier's invoice number
- Due date, from the bill or your agreed terms
- Amount, and the category it belongs to
- Any purchase order or job reference
Check the supplier's invoice number isn't already in your books. Duplicate numbers are the classic early warning for a bill sent twice.
Stage 3: approvals that don't slow everything down
Approvals exist to catch three things: bills for work that wasn't done, bills with the wrong amount, and bills that aren't real (fake invoices and changed bank details are a known fraud). They shouldn't turn into a week-long wait.
A light approval policy for a small team:
- Under a set amount (say £250) from a regular supplier: no approval needed, straight to the payment run.
- Above that amount: approved by the person who ordered it or owns the budget.
- Any bill from a new supplier: approved by the owner.
- Any change to a supplier's bank details: verified by phone, on a number you already had, before anything is paid. Never trust new details sent by email alone.
Write the policy down. One paragraph is enough.
Stage 4: a weekly payment run
Paying bills whenever they turn up feels responsive. It's also how you lose track. A weekly run (pick a day; Thursday works for lots of people) gives you a rhythm and a natural checkpoint.
Here's Dev's run for Thursday 15 Oct 2026, with £18,400 in the bank before payments:
| Supplier | Bill | Due date | Amount | Pay this run? |
|---|---|---|---|---|
| Venue hire company | B-2291 | 16 Oct 2026 | £3,200 | Yes |
| Lighting supplier | L-5507 | 20 Oct 2026 | £1,860 | Yes |
| Catering partner | C-0412 | 22 Oct 2026 | £2,450 | Yes |
| Printing firm | P-1188 | 30 Oct 2026 | £640 | No, next run |
| Freelance crew | F-0091 | 19 Oct 2026 | £1,150 | Yes |
| Paying this run | £8,660 |
£3,200 + £1,860 + £2,450 + £1,150 = £8,660. That leaves £9,740 in the bank, with the £640 print bill held for the 29 Oct 2026 run.
Before the run, look at your cash. If something has to wait, it's better to call the supplier and say so than to let it slide quietly.
Stage 5: match every payment back to its bill
When the payments leave your bank and come through on the feed or statement, match each one to the bill it paid. That marks the bill paid, clears it from aged creditors and proves you didn't pay anything twice.
A combined payment (one transfer covering several bills from the same supplier) gets split across those bills. A supplier credit note gets applied before payment, so you only pay the net. Our guide to matching bills to bank payments goes into those cases in detail.
Signs your workflow is leaking
- [ ] Suppliers sending statements with credits on them (you've overpaid)
- [ ] Late payment reminders arriving for bills you've never seen
- [ ] Aged creditors showing bills you know you've paid
- [ ] Staff paying suppliers from their own cards and claiming it back
- [ ] More than one person paying bills with no shared list
Two or more of those and it's worth an hour sorting out the steps above.
What to watch for in a tiny team
In a two-person business, the person who enters a bill may be the same person who approves and pays it. That's fine; separation of duties is a luxury at that size. Make up for it with a monthly check: once a month, the owner skims every payment made and every new supplier added. Ten minutes, and you'd spot anything strange.
How HelloBooks helps
HelloBooks Free lets you record bills and see an aged creditors (AP ageing) report, so you always know what you owe. On Pro (£14.99/month), bills & approvals let you route bills to the right person before they're paid, with unlimited users and roles so each person sees what they need.
HelloBooks doesn't send payments; you pay suppliers from your own bank as usual. When those payments come through your Open Banking bank feed or a CSV statement, the reconcile screen suggests which bill each one matches, with a confidence score and reason, so stage 5 takes minutes. On Business, the audit log records who did what. Compare plans on pricing, or see the bookkeeping features.
FAQs
Who should approve supplier bills in a small business?
Whoever ordered the goods or owns the budget, with the owner approving anything unusual, large or from a new supplier. Keep the policy short and written down.
Should I enter bills when they arrive or when I pay them?
When they arrive. That keeps aged creditors accurate and puts costs in the right month on your P&L. Paying is a separate step.
How do I avoid paying a bill twice?
Have one inbox for bills, check the supplier's invoice number before entering, pay only in a scheduled run from approved bills, and match every bank payment back to the bill it settled.
What should I do if a supplier emails new bank details?
Don't change anything on the strength of an email. Phone the supplier on a number you already had, not one from the email, and confirm. Changed bank details are a common route for invoice fraud.
How often should we pay supplier bills?
Weekly or fortnightly runs suit most small businesses. Pay according to due dates, not when bills arrive, unless there's an early-payment discount worth taking.
One inbox, one run, every payment matched. Boring, and that's the point.
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