How do companies keep multiple accounts reconciled for the same utility provider (i.e. 5 accounts for company ABC with a gas provider)?


It depends on your accounting system's capabilities and how you need to show the cost in your financial records. For instance, if you need to charge the utility cost to different department cost centers and each utility bill is for a different department cost center then it may be expedient to have separate accounts set up for each utility/department for identification of the expense.

It would also allow you to see how much your utility costs are by department cost center and each utility account is an independent vendor record. On the other hand, if your system can allow you to set up one vendor and each bill can be coded to its respective department cost center then having one vendor account for each of the 5 utility accounts may work just as well. If your system can't pull out vendor bills so that you can identify the charges by account number then it may be difficult for you to reconcile to a monthly statement of any past due invoices from the utility provider.

Have more questions? Submit a request