The steps, in plain language
- 1
Request and approve the vendor
The person who wants to buy asks for the vendor; someone else approves adding it. That split stops fictitious vendors.
- 2
Collect the W-9
Get the legal name, business entity type, address and taxpayer identification number (EIN or SSN) on a signed W-9 before the first payment.
- 3
Verify the tax ID
Check the name and TIN combination, for example with the IRS TIN Matching service if you are an authorized payer.
- 4
Collect and verify bank details
Take bank details on letterhead or a secure form, then confirm them by calling a phone number you already have, not one on the request.
- 5
Set terms and coding
Record payment terms and the default GL account so invoices are coded consistently.
- 6
Set 1099 status
Mark whether payments to the vendor are reportable on a 1099.
- 7
Review the vendor list
At least yearly, look for duplicates, dormant vendors and changed details. Deactivate what you no longer use.
Onboard vendors in Aequo AP
Vendors live under Vendors in the sidebar (the page heading is Suppliers). Tax details are in Settings › Tax & 1099.
- 1
Add the vendor
Go to Vendors › Add Vendors. Fill in Basic Information and, optionally, Contact Details and Supplier Tolerances, then select Create Supplier. To add many at once, use Vendors › Vendor Import.
- 2
Request the W-9
Open Settings › Tax & 1099 (Tax & 1099 Compliance). In Vendor Tax Information, use the Request W-9 button (the envelope icon) on the vendor’s row and track the W-9 Status: Not Requested, Requested, Received or Expired.
- 3
Record the tax ID and 1099 status
The Tax ID (EIN/SSN) column shows only the last four digits once stored; tax IDs are encrypted at rest and only Owners and Admins can reveal one. Set 1099 Eligible for reportable vendors.
- 4
Add bank details
Open the vendor and, under Payment Methods, select Add Payment Method and enter Bank Name, Routing Number and Account Number. Verify them by phone first.
- 5
Set default coding
In Settings › Coding Rules, use the Vendor Defaults tab so the vendor’s invoices are coded the same way each time.
- 6
At year-end
In Tax & 1099, under 1099 Forms, use Generate Drafts, then Mark Ready and Mark Filed.
Keep QuickBooks Online and Xero in step
Vendors sync between Aequo and your accounting system.
- 1
Sync
The QuickBooks Online integration syncs vendors, bills and purchase orders; the Xero integration syncs contacts. Add new vendors in one place to avoid duplicates.
Common mistakes
- Paying a new vendor before the W-9 is in, then chasing it at 1099 time.
- Changing bank details because of an email, without a call-back.
- Letting the same person add vendors and approve their payments.
Frequently asked questions
What are the steps in a vendor onboarding process?
Approve the new vendor, collect a W-9, verify the tax ID, collect and verify bank details, set terms and default coding, set 1099 status, and review the vendor list regularly.
When should I collect a W-9?
Before the first payment. The W-9 and 1099 guide explains who needs one and the current reporting thresholds.
How do I stop vendor bank detail fraud?
Verify every new or changed bank detail by calling the vendor on a number you already hold, and keep vendor setup and payment approval with different people. The vendor fraud red flags guide lists warning signs.
Try it in Aequo AP
Aequo AP captures invoices, matches them to purchase orders and delivery notes, routes approvals and flags exceptions and duplicates, then syncs approved bills with QuickBooks Online, Xero, FreshBooks or Zoho Books.