Accounts Payable Management

ACI helps our broker-dealer clients manage their payables by accurately recording expenses, monitoring remittance obligations, maintaining a clear schedule of liabilities and offering secure protocols for vendor payment – all in support of the month-end financial close, capital compliance and regulatory accuracy.

ACI’s accounts payable management services include:

Expense Accruals and Allocation

ACI records expenses on an accrual basis and assigns them to the correct general ledger accounts for financial and regulatory reporting purposes. Each invoice is reviewed for accuracy and recorded in the period services were rendered.

Accounts Payable Scheduling and Oversight

ACI maintains detailed accounts payable schedules to support payment decisions, manage liabilities and streamline reporting. Clients receive a clear view of obligations at month-end and throughout the reporting cycle.

Vendor Bill Pay with Dual Authentication

Paying vendors shouldn’t require compromising internal controls. Our vendor management services are complemented by a secure dual-authorization vendor payment workflow designed to segregate duties and reduce risk – a best practice in regulated environments.

Checks and wires issued only by client instruction – ACI never remits payments independently
Dual signoff protocols to prevent unauthorized fund movement
Authorization by licensed Series 24 supervisory principals to demonstrate regulatory controls
Flexible processing schedule (typically mid-month and month-end)

Questions on accounts payable management for broker-dealers? Here’s what you need to know.

What is accounts payable management and why is it important?

Accounts payable management involves recording, classifying and scheduling expenses. For broker-dealers, it ensures that liabilities are accurately recorded in the correct period, supports cash flow planning and helps meet regulatory and tax reporting requirements. It also creates a clear record of obligations to support audits and financial oversight.

How does accounts payable management impact regulatory compliance?

Accurate accounts payable management ensures that expenses are properly classified and reported in accordance with GAAP, FOCUS and SSOI requirements. It also helps maintain accurate month-end books and supports regulatory filings and examinations. Errors or omissions can lead to discrepancies that affect net capital calculations and raise compliance concerns.

Why is a structured payment schedule beneficial?

Scheduling vendor payments – such as mid- and end-of-month cycles – helps standardize cash flow, simplifies reconciliation and assists with coordination of internal approvals. Automating these workflows also minimizes human error and reduces the risk of duplicate or missed payments.

What are best practices for accounts payable management?

Best practices include accrual-based expense recognition, proper classification of vendor invoices and the use of detailed payables schedules. Firms should also monitor for missing or irregular invoices, align payments with internal review cycles and implement internal controls – such as dual authorization – to reduce risk.

How does dual-factor authorization (2FA) protect vendor payments?

Dual authentication (2FA) requires two separate credentials to create and authorize payments – one from your designated ACI regulatory bookkeeper and one from your licensed Series 24 supervisory principal. This extra layer stops unauthorized access to vendors or bank accounts, supports a secure audit trail, aligns with internal security policies and is generally a best practice in regulated environments.