Accounts Reconciliation Blog

A very common question in small business accounting is “What is Accounts Payable”? A very simple way to understand this term is to think of it as a debt.  Usually it is money owed to suppliers. When a supplier submits an invoice the invoice will go into the accounts payable file and then removed when the debt is paid.

Also known as AP, it plays a very critical role in the financial cycle of the business. Today’s AP department also controls roles such as fraud prevention, cash flow management, supply chain and cost reduction.