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business

Best Account Payable Software for Businesses

What is an account payable?

Account payable or AP is a term used in accounting that refers to the money that your company owes to third parties such as suppliers or creditors. This money is typically owed for goods or services that have been received but not yet paid for. When a company has an outstanding account payable, it means that it has not yet made payments on these invoices.

Outstanding accounts payable can create issues for a company, as creditors may start to demand payment or may refuse to extend further credit. This can put a strain on the company's cash flow and may lead to financial difficulties.

Companies need to keep on top of their account payable and make timely payments. This ensures that suppliers and creditors are happy and that the company does not experience any financial difficulties.

Most businesses have a separate AP department to process the bills/invoices received, as well as payments made to vendors. The A…

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  • INFOXIA
  • November 7, 2022
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