A payment run is the moment cash actually leaves the business, so it deserves the same rigour as the close. This checklist takes the run from cash position and invoice selection through approval, release, and reconciliation. It includes an early-payment discount calculator, since a 2/10 net 30 discount is worth about 37% a year and is often missed because nobody worked it out. Pair it with our software category guides to see which tools fit your team. Once you have a shortlist, check the vendor profiles and the finance glossary for unfamiliar terms, then use our head-to-head comparisons before your first demo.
Built for: AP manager, Controller, Treasury manager
+1 more inside
Fix the run calendar. Set a regular schedule, such as weekly or twice weekly, and a cut-off for invoices to be approved. Off-cycle payments should need a documented reason and the Controller's approval.
Select by due date, then look for discounts. Pay invoices due before the next run, not everything approved. Then check discount terms and include invoices where the annualised return beats your cost of funds.
Separate preparation, approval, and release. The person who builds the proposal should not approve it, and neither should be the only person needed to release it in the bank.
Close the loop the same day. Send remittances, upload the positive pay file for any checks, and reconcile the payments to the bank before the next run.
Here's a preview. Unlock the free download to get all 6 sections (5 more below).
More free templates finance teams use alongside this one.
Accounts payable fraud rarely looks like fraud at the time. It looks like a routine email from a known vendor asking to update bank details, or an urgent request from an executive who is travelling. This checklist covers the controls that stop the common schemes: independent verification of bank changes, red flags for business email compromise, duplicate payment checks, bank-side protections, and dual approval on payment release.
Most approval matrices fail in one of two ways: every invoice goes to the CFO, or nobody can say who approves a $40,000 software renewal. This approval matrix separates PO-backed invoices, where approval already happened at the purchase order, from non-PO spend, where the invoice is the only control point. It also names a backup for every approver so invoices do not sit in someone's inbox while they are on leave.
A 13-week cash flow forecast is built from cash, not from the P&L. It uses the direct method: what will actually land in and leave the bank each week. This 13 week cash flow template rolls closing cash forward automatically, checks every week against your minimum cash threshold and revolver availability, and includes a variance-to-actual log, because a forecast that is never compared with the bank statement never gets better.
A payment run is a scheduled batch in which accounts payable selects approved invoices that are due, gets the batch approved, and releases payments through the bank. Running payments on a fixed schedule makes cash predictable and reduces ad hoc payments.
Weekly is common for mid-market companies, with some running twice a week for higher volumes. Choose a frequency that lets you pay on due dates without paying early, and keep off-cycle payments to documented exceptions.
Divide the discount by the amount paid, then multiply by the number of periods in a year: 2/98 x 365/20, which is about 37.2%. Using a 360-day year gives about 36.7%. Take the discount if that return exceeds your cost of funds.
Different people should prepare the proposal, approve it, and release it in the bank. At minimum, release should need two users in the banking portal, and release approvers should not be able to change vendor bank details.
