What is accounts payable & receivable with CapEasy?
AR and AP are where most small finance functions quietly leak money: invoices that go out late, receivables nobody chases, duplicate payments, and suppliers paid earlier than the terms require. Running both to a schedule is unglamorous and immediately worth it.
Accounts payable and receivable are the two ledgers that turn a bank feed into a set of books your CPA can actually use. Payable is every bill you owe — rent, contractors, software, inventory — captured, coded, matched to what was actually ordered and received, and queued for payment on a schedule you control. Receivable is the mirror: every invoice you've sent, tracked until it's paid, with cash applied to the right customer and the right invoice so your revenue numbers are never a guess. Neither side is glamorous. Both sides are where a business's real financial picture either holds together or quietly falls apart.
The work runs on a monthly cadence but the habits are daily. Bills get entered and coded as they arrive, not batched for a end-of-month scramble. A named person on your account owns the vendor master and the customer ledger; AI does the repetitive part underneath them — matching an invoice to a purchase order and a receiving record, suggesting the GL code based on how that vendor has been coded before, flagging a duplicate before it's paid twice, catching a customer payment that doesn't match any open invoice. None of that software output goes anywhere without a person looking at it. Your job stays talking to that person, not learning a new tool.
The services inside accounts payable & receivable
4 services, each with its own page — scope, process and the licence line stated before you buy anything.
| Accounts payable | Bills captured, coded, approved and scheduled — with an audit trail. |
| Accounts receivable | Invoices out on time, ageing watched, cash applied correctly. |
| Vendor master management | Clean vendor records, including the tax data January will ask for. |
| Collections support | A follow-up rhythm on overdue invoices that does not damage the relationship. |
Why it matters
| Without a system | With CapEasy |
|---|---|
| Cash flow shortages that were predictable | Predictable inflows and controlled outflows |
| Revenue leakage from uninvoiced work | Aging you can act on before it is a problem |
| Duplicate or early payments | A clean audit trail on every payment |
| Supplier disputes over what was actually agreed | Working capital you can actually plan around |
What we need from you
Receivable
- Customer master data
- Sales invoices
- Payment history
- Credit terms
Payable
- Supplier master data
- Purchase orders
- Supplier invoices
- Payment terms
- Expense receipts
How it runs, step by step
- Receivable
- Invoice creation and validation
- Recurring invoice setup
- Credit notes
- Payable
- Invoice recording and coding
- Three-way matching (PO, receipt, invoice)
- Payment scheduling and due-date monitoring
- Inventory, where relevant
- SKU-level tracking
- Multi-location stock
- FIFO / weighted average costing
What lands with you, every cycle
- AR aging report
- AP aging report
- Supplier reconciliation statements
- Customer balance confirmations
- Inventory valuation and COGS summary
- Working capital view
Who does what
Here is the licence line in the United States, stated before you buy anything — each of these is carried out by your CPA or enrolled agent:
- Issue compilation, review or audit reports — those are restricted to licensed CPA firms.
- Prepare or file federal or state tax returns.
- Represent you before the IRS, or respond to notices on your behalf.
- Determine sales-tax nexus, or worker classification.
- Advise on which entity to form, or draft formation documents — that is legal work.
Accounts payable & receivable in United States
Form 1099-NEC and the January 31 deadline
Any US business that pays an unincorporated contractor $600 or more in a calendar year generally has to issue a Form 1099-NEC by January 31. The form is easy to file on time when the data is right; it's a scramble when it isn't. That data — a signed W-9, a validated Tax ID, a running total of what's been paid — has to exist before December 31, not get assembled after. We capture it at the point a vendor is onboarded and keep a running 1099 tally through the year, so the file that reaches your CPA or filer in January is already complete.
Backup withholding when a W-9 is missing or wrong
Under IRC §3406, if a vendor won't provide a Tax ID, or the one on file doesn't match IRS records, the payer can be required to withhold at the backup withholding rate on future payments. That's a rule that bites at the moment of vendor setup, not at tax time — if the intake process doesn't catch a missing or mismatched W-9, the exposure sits there until someone notices, usually your CPA, usually too late to fix cleanly. Vendor onboarding is built to flag this before the first payment goes out, not after the fifth.
Sales tax nexus is a determination your CPA makes
AP and AR data — where your customers are billed, where inventory ships from, transaction volume by state — is exactly the data a sales tax nexus determination is built on. We keep that data clean and exportable. The nexus determination — and where you owe sales tax — is made by your CPA or a sales tax specialist, and it stays theirs.
AP/AR data feeds the entity return, it doesn't become one
Whether your CPA files a Form 1120, 1120-S, or 1065 depends on how your entity is structured, and every one of those returns starts with a general ledger. A duplicate vendor payment, a misapplied cash receipt, or a miscoded bill doesn't stay a bookkeeping error — it becomes a number on the return your CPA signs. Keeping AP and AR reconciled monthly, not scrambled at year-end, is what makes that handoff clean instead of a source of amended filings.
What your CPA or enrolled agent receives from us
- A coded, monthly-reconciled AP ledger matched to vendor statements, with every open bill categorized to the correct GL account.
- An AR ageing schedule broken into 30/60/90/90+ day buckets, refreshed on a set cadence rather than assembled once a quarter.
- A 1099-NEC vendor file — signed W-9s, validated Tax IDs, running year-to-date payment totals — ready before January, not built in it.
- A month-end AP accrual schedule capturing goods and services received but not yet invoiced, so expenses land in the right period.
- Cash application reconciliation matching every bank deposit to the specific customer invoice(s) it pays.
- An exception log of anything flagged and awaiting a decision — a duplicate-looking invoice, a payment with no matching invoice, a vendor with a stale or missing Tax ID.
Questions worth asking before you start
Will you deal with the Internal Revenue Service on my behalf?
No. We are a consulting firm — licensed work runs through partner CPA firms. Anything that means dealing directly with IRS — filing, correspondence, representation — stays with your CPA or enrolled agent. What changes is how much work it is for them: they open a file that is already reconciled and coded, not one they have to rebuild first.
Exactly what lands with your CPA or enrolled agent at the end of a cycle?
AR aging report, AP aging report, Supplier reconciliation statements, Customer balance confirmations, Inventory valuation and COGS summary, Working capital view. All of it goes to your CPA or enrolled agent — or straight to you, if you are the one reviewing before it moves on.
Who actually does the work — a person or an AI tool?
A named person on our team owns your file and reviews everything that leaves it. Software does a real share of the grinding underneath it — coding, matching, flagging the obvious gaps — but nothing regulated happens without a person’s judgement, and nothing here is signed or filed by an algorithm.
Will you chase our customers for payment?
Yes, on the schedule you set, so it does not fall to whoever on your team has time that week.
Can you pay our suppliers directly?
We prepare and schedule payment runs to terms. The actual release of funds stays with someone on your side who holds the banking access, unless you have specifically authorised otherwise.
Do you handle inventory as well?
Where it is relevant — SKU-level tracking, costing and stock reconciliation sit inside this service rather than as a separate one.
What exactly do you do for accounts payable?
We capture and code every bill as it arrives, match it to a purchase order and receiving record where one exists, route it through your approval workflow, and prepare the payment run on your schedule. You approve; every payment release follows your sign-off.
Do you decide which vendors get a 1099-NEC?
We track the classification and the running payment total, and we flag every vendor that crosses the $600 threshold. Whether a specific vendor is correctly classified as a contractor, and the actual filing, sits with your CPA.
What happens if a vendor won't give us a W-9?
We flag it at the point of first payment so backup withholding can start under IRC §3406 instead of surfacing as a problem in January. Your CPA decides the withholding rate and directs any filing that follows.
Who actually files the 1099-NEC forms?
Your CPA or your filer files them. We build the vendor file — signed W-9s, validated Tax IDs, year-to-date totals — so filing is a review, not a data-collection scramble.
Can you make sure no single person can add a vendor and approve their own payment?
Yes — that separation is a standard approval-workflow control, and we set the roles and dollar thresholds you want enforced.
Do you catch duplicate invoices before they get paid?
AI flags likely duplicates — same vendor, same amount, close in time — for a person to clear before the payment run. It flags; a person decides.
How is AR ageing handled?
We keep a live 30/60/90/90+ day ageing schedule and review it on a fixed cadence, not just at month-end, so a slow-paying account gets caught while it's still 30 days out, not 90.
Will you contact my customers directly about a late invoice?
We draft the follow-up and track the promise-to-pay. Whether that goes out under your name or ours, and how firm the tone is, is a call you make — collections is a relationship matter that stays hands-on, not automated.
Does AI decide which invoices get paid or which payments get matched?
No. AI matches, suggests, and flags — a purchase-order match, a coding suggestion, a likely cash-application match. A named person on your account reviews and approves before anything posts or pays.
How does AP/AR data connect to my company's tax return?
Your Form 1120, 1120-S, or 1065 is built from your general ledger, and AP/AR is where most of that ledger's activity originates. Clean, reconciled books mean fewer questions and fewer amendments; your CPA still prepares and signs the return.
Do you determine where I owe sales tax based on my AP/AR data?
No. We keep the underlying data — where customers are billed, transaction volume by state — clean and exportable. Determining nexus and any resulting sales tax obligation is a call for your CPA or a sales tax specialist.
What's a three-way match, and do you do it?
It's matching a bill to the purchase order that authorized it and the receiving record confirming the goods or services arrived, before payment. We run that match for vendors where a PO process exists; it's one of the main things that catches an inflated or duplicate invoice.
Can you work inside the AP/AR tools we already use?
Yes — QuickBooks, Bill.com, and similar platforms are where this work happens day to day. The process tightens up on the software you already use, with no switch required.
