Are multiple AP accounts needed?
This all depends on your reporting needs and how you pay your bills.
- If you always pay your bills in the same month as the Invoice Date on the bill, no (would also question why you are using Accrual instead of Cash).
- If you only have one bank account probably not; it would depend on what the AP accounts are used for.
- If you need Aging reports for different categories such as bank accounts or departments then, yes.
The advantage of multiple AP accounts is to determine what is open for each AP account's bills. It is also a must for separating Aging reports into the correct "Department".
Let's say you have a church checking account and a ministry account. If you need to know what bills were unpaid for each or either, at a certain time, then being able to run the Aging report for each AP account separately will save you from having to add up the open bills manually.