It’s easy to move past looking at the detail of the unpaid or aged unpaid bills listing provided with the monthly management report.  Whilr the total due might be the most pressing issue, looking at the detail of what’s due can lead to saving money and protecting assets. So let this report do more than just inform you as to the extent of the unpaid bills.

The components of the total are most important as to what’s for capital items and what’s for operations, the regular monthly bills.  The former is generally non-recurring and, hopefully, adequate capital budgeting and planning was done as part of approving the capital work.  The total for operations should generally be comparable.

Operating expenses can change as certain expenses are due on a less than monthly basis. Generally real estate taxes are due quarterly or semi-annually and without financing, insurance is due once a year.

Is it possible for you to consider the work that you are aware of has been accomplished over the last month?

If so, see if those services or deliveries had been paid for in the check register.

If not, you can evaluate if all that you are aware of is included in the unpaid bill listing.

You may find that not all the items are actually included.

We wish to warn you to never expect that the list is totally comprehensive.

As part of our audit work, we find unpaid bills which were not included on the unpaid bill listing by the date it was printed.

Have last month’s report handy.

It is helpful in order to review this month’s listing!

Compare to the one from the prior month to the current one and:

  • Evaluate invoices which remain from the prior month
  • Consider how the total amount owed has changed from the prior month
  • Scan the list to determine which types of invoices are reasonable
  • Verify the effect on non-recurring items on annual budget
  • Compare the balance in the operating cash bank account to cover the change
  • And most of all, always be aware of the total aged payables balances that are growing and growing!