What Is The Accounts Payable Process?
Just like accounts receivable is the amount due to your company by its customers, accounts payable is the money your business owes to its third parties including vendors or suppliers. Denoted by "AP", it is sometimes an entire department in big companies or is handled by a single member of the accounting staff in smaller firms. However, the accounts payable is a critical part of your accounting function. This is because it covers almost every payment your company makes outside of payroll. Continue reading to know. about the accounts payable process and some problems faced by the AP professionals. What is the accounts payable process? Since accounts payable defines the money your business owes to its third parties, the AP process is responsible for ensuring timely payment for goods and services purchased by your company. In big companies, there is a specific department to handle the accounts payable process which looks after the incoming bills or invoices. However, di