Pocket's Bill Recording and Reconciliation Options

Overview:Pocket offers two options for recording bills and reconciling bill payments, depending on the volume of monthly bills.

Option 1: Cash-based (Recommended for up to 20 bills per month)

• Pocket configures rules to recognize bill.com expenses and categorize them when funds are drawn from the client's bank.
• For single bill payments, Pocket can set up keyword rules to auto-map outflows to specific expense or asset categories.
• Example: Configuring outflows with specific keywords as "Inventory Asset" or "Marketing contractor".

Challenges with Option 1:

• When multiple bills are paid on the same day, bill.com may withdraw a lump sum without specifying individual vendors.
• Solutions:
  • Client performs manual split at month-end by comparing bill.com details with Pocket's outflow.
  • Client can invite hello@mypocketcfo.com to access their bill.com account for monthly checking and splitting (for less than 20 bills per month).
  • Additional bills matching/splitting incur extra fees.

Option 2: Accrual-based (Recommended for over 20 bills per month)

• Connect bill.com to QuickBooks Online (QBO).
• Bill.com automatically pushes all bills into QBO.
• Pocket ingests bills created in QBO to record expenses as they're created.
• Pocket sets up rules to map bill.com outflows to the AP (Account Payment) account for reconciliation.

Recommendation:For personalized advice on which option best suits your needs, please consult a Pocket CPA.