What is Accounts Payable?
Accounts payable are the debts that the business needs to pay. Oftentimes, accounts payable are kept track of in a monthly manner. At the end of the month, a business looks at all the debts they need to pay. It is handy to keep a record of accounts payable in case there are any payment disputes, in order to remind the business to pay, or as proof of spending at tax time. These records can be kept manually or with accounting software.
Accounts Payable for a Business
Accounts payable for a business, also sometimes referred to as A/P, consists of any items purchased on credit, generally within a specified month. Anything the company buys and owes money on is considered accounts payable.