Accounts payable

Accounts payable, or A/P, is the list of bills you have received and still need to pay. Examples include supplier invoices, subcontractor bills and software subscriptions billed in arrears. Each bill has an amount and a due date.

Managing A/P well protects relationships and cash flow. Paying late can cost fees and trust. Paying too early can strain cash. On a balance sheet, unpaid bills appear as a liability. Under accrual accounting, you record the expense when the bill arrives.

The opposite side is accounts receivable, money owed to you. Peachtree VA's bookkeepers can help manage A/P and invoices. See our bookkeeping services. Tracking due dates in one place helps you avoid late fees and take early payment discounts when they are offered.