Accounts Payable templates Start the discussion!

What are Accounts Payable?

Accounts payable relates to an organisation's responsibility to make payments owed to suppliers or vendors, after having received goods or services that have not yet been paid for. The total money owed to vendors is displayed as the Accounts Payable, which is recorded on a balance sheetunder any other current financial liabilities - showing the company's obligations to pay off debts.

What does an Accounts Payable balance sheet include?

1.) The sum of money that is owed by the company to creditors after having received goods or services

2.) The due date of payment

3.) Credit terms and conditions between the company and its creditors (such as interest rate and payment schedule)

4.) Information of the creditor, including the name and contact information of each creditor that money is owed to

5.) A record of the company's payment history to its creditors. This includes the date and the amount of each payment

What are the benefits of using an Accounts Payable balance sheet?

An accounts payable balance sheet allows an organisation to easily review its current financial situation. From there, the company can assess whether it is on track to pay its money owed on time. Overall, it is a useful way of facilitating the management of cash flow.