Accounts Reconciliation Blog

Every business deals with suppliers and creditors. To define accounts payable, this is the money you owe to your suppliers and creditors. The transactions are recorded in the accounts payable ledger. They are debts that result from purchasing products or receiving services on credit or via an open account.

You have accounts payable when you have not yet paid your suppliers and creditors. Accounts payable is also know as a current liability on your balance sheet. When the accounts payable are paid off, it will represent negative cash flow for the company.