Finance
Accounts payable
Also known as AP
Accounts payable is money a business owes to suppliers for goods or services received but not yet paid for. Payables are recorded as a liability under accrual accounting and represent a short-term source of financing from suppliers.
In plain terms: Bills you have received but not yet paid.
Why it matters
Supplier terms are effectively an interest-free loan, and managing them deliberately is one of the cheapest cash-flow levers a small company has — provided you keep the relationship intact.
Read the full guideBookkeeping