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What is ‘Accounts Payable’?

Accounts PayableAs part of getsix® ‘Business Process Outsourcing’ we offer to do your ‘Accounts Payables’. This refers to the bills you need to pay, which can also be called ‘payable’ or ‘AP’.

A simple way to consider this would be to think of ‘Accounts Payables’ as a bill that your business has not paid yet. You might owe a supplier for raw materials, for example. Or you may owe money for an unpaid electrical or phone bill.

If you buy some materials from a supplier on credit, they will send you an invoice for those materials. In your records, the amount on that invoice is part of your accounts payable. In your supplier’s records, that invoice will be part of their ‘Accounts Receivables’. In this way, ‘Accounts Payables’ and ‘Accounts ‘Receivables’ are two sides of the same transaction.

‘Accounts Payables’ might also refer to the person or team who processes invoices and pays your bills. A supplier who hasn’t yet received payment for the goods they have provided might want to talk to ‚Accounts Payables‘.

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