What Bill.com Does?
When you pay bills through Bill.com, it doesn't take money out one invoice at a time. Instead, it withdraws one lump sum (a "batch") from your bank account. For example, if you're paying 10 invoices totaling $10,000, it pulls $10,000 all at once from your checking account.
Why That Can Be Confusing?
If you're also marking each invoice as "paid" in your accounting system one by one, it becomes hard to match those smaller payments to the one big $10,000 withdrawal in your bank statement. That’s what makes reconciliation tricky.
How to Fix It: Use a Bill Clearing Account?
To make your books match easily, you can set up a temporary “Bill Clearing Account” in your accounting system. Here's how it works:
When the payment batch is made:
You record that $10,000 is moved from your real checking account to the Bill Clearing Account.
Think of the Bill Clearing Account like a waiting room.
As each invoice is marked paid:
You say the money came out of the Bill Clearing Account, not your actual bank account.
This makes all payments neat and traceable.