What is Accounts Payable?
Business Terms
Explained Simply
Accounts payable is a current liability on the balance sheet. When you receive a supplier invoice, the amount becomes a payable. When you pay the supplier, the payable decreases and cash decreases. Managing payables effectively means paying on time to maintain good supplier relationships and credit terms, while also optimising cash flow by not paying too early. Accounter tracks all payables and can schedule payments to optimise cash flow.
Related Terms
- InvoiceAn invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided, quantities, prices, and payment terms.
- Accounts ReceivableAccounts receivable (also called debtors) is the money owed to a business by its customers for goods or services that have been delivered but not yet paid for.