The Property Manager’s Year-End Countdown: Paid, Pending, or Problem — Cleaning Up Vendor Payments Before Year-End
Paid, Pending, or Problem — Cleaning Up Vendor Payments Before Year-End - How to Avoid Year-End Vendor Headaches
You have reconciled your owner balances, and now it is time to make sure your vendor side tells the same story.
Nothing complicates year-end reporting faster than unpaid invoices, duplicate entries, or payments coded to the wrong year. Cleaning up vendor activity now ensures your 1099s are accurate, your trust balances are aligned, and your books reflect reality before December 31.
Why It Matters
Outstanding vendor payments can quietly throw your books off balance. A few unpaid bills or duplicate entries might not seem like much, but they can lead to inaccurate expenses, delayed 1099s, and frustrated vendors. Taking time to review and reconcile vendor activity now ensures your financials tell the right story and your vendors stay confident in how you manage their payments.
Your Week 7 Action Plan
Take time this week to review, verify, and clean up all vendor payments before year-end.
Step 1: Run an Open Payables or Vendor Balance Report
Export your Open Payables or Vendor Balance report from your accounting system.
Review for unpaid or partially paid invoices.
Identify vendor credits or overpayments.
Confirm that all legitimate expenses are dated to the correct year.
Step 2: Verify Payment Posting Accuracy
Confirm that payments in your accounting system match what cleared in your bank feed.
Check for duplicate entries caused by manual syncs, imports, or batch uploads.
Review electronic payments (ACH, Bill Pay, Venmo, Zelle, and others) and make sure they are recorded under the correct vendor and expense category.
Step 3: Review Pending or Problem Vendors
Flag vendors with invoices outstanding for more than 60 days.
Investigate whether those balances are legitimate payables, timing issues, or entry errors.
Verify vendor contact details and preferred payment methods to ensure smooth year-end payouts and accurate 1099 delivery.
Step 4: Match PMS and Accounting System Data
Reconcile vendor totals between your Property Management System (PMS) and accounting platform.
Watch for "ghost vendors" using different names with the same EIN.
Confirm that reimbursements or owner-funded expenses are not duplicated in both systems.
Step 5: Review Open Payables for Year-End Tax Planning
If you file on a cash basis, evaluate open payables and determine if certain vendor payments should be made before December 31.
Paying key bills now can shift legitimate expenses into the current year.
Coordinate with your CPA or bookkeeper to make intentional timing decisions before closing the books.
Step 6: Clear or Correct
Post payments or adjustments to clear remaining balances.
Void or reclassify duplicate payments as needed.
Document open items and assign follow-up tasks to your team before month-end.
Pro Tip
Use this review to update your Vendor W-9 Tracker while details are fresh. Confirm names, addresses, and EINs now. It saves time and frustration when January 1099 preparation begins.
The Payoff
Cleaning up vendor activity before year-end not only saves time later but also ensures every dollar is properly accounted for. It strengthens your financial foundation for 2026 and gives you a clean, confident start to the new year.