Accounts Payable

A business's outstanding obligations to suppliers and creditors.

What is Accounts Payable (AP)?

Accounts payable refers to the amount a company owes to vendors or suppliers for goods and services received.

Managing accounts payable is crucial for cash flow management.

Key components of accounts payable include:

  • Recording and tracking invoices
  • Processing supplier payments
  • Ensuring timely payments to maintain vendor relationships
  • Accounts payable departments use automation tools to streamline invoice processing and avoid late payments.

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