Accounts Payable

Definition:

A company's outstanding debts, or liabilities, to vendors for purchases of goods and services made on credit

It’s important to track accounts payable promptly to ensure that you know how much you owe each supplier and when payment is due. Many a good supplier relationship has been damaged due to a sloppy accounts payable system. Also, if your suppliers offer discounts for payment within 10 days of invoice, a good automated accounts payable system will alert you when to pay to maximize the discounts earned.

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