---
title: "Accounts payable: Meaning for Small Business Owners"
description: "Accounts payable is the money a business owes to vendors and suppliers for goods or services it has received but not yet paid for."
url: https://peachtreeva.multisites.ai/glossary/accounts-payable
publisher: Peachtree VA
book: https://peachtreeva.multisites.ai/contact
---

Bookkeeping

# Accounts payable

Accounts payable is the money a business owes to vendors and suppliers for goods or services it has received but not yet paid for.

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](https://peachtreeva.multisites.ai/glossary/balance-sheet), unpaid bills appear as a liability. Under [accrual accounting](https://peachtreeva.multisites.ai/glossary/accrual-vs-cash-basis), you record the expense when the bill arrives.

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

[Peachtree VA can helpOutsourced bookkeeping for small business](https://peachtreeva.multisites.ai/bookkeeping)

## Related terms

-   [Accounts receivable](https://peachtreeva.multisites.ai/glossary/accounts-receivable)
-   [Balance sheet](https://peachtreeva.multisites.ai/glossary/balance-sheet)
-   [Accrual vs cash basis](https://peachtreeva.multisites.ai/glossary/accrual-vs-cash-basis)

## Get your week back.

Book a free, no-obligation strategy call. We will map out what to hand off first, and you leave with a plan whether or not you become a client.

[Book a free strategy call](https://peachtreeva.multisites.ai/contact)[or email info@peachtreeva.com](mailto:info@peachtreeva.com)

![Sarah Harlan, Client Experience & Operations Manager](https://peachtreeva.multisites.ai/_astro/sarah-harlan.DtVquYwL_2b0Qn7.webp)

![Darleen Priday, Vice President of Business Development](https://peachtreeva.multisites.ai/_astro/darleen-priday.jiyh6aPr_1PLR4H.webp)

![November Lee, Marketing Manager](https://peachtreeva.multisites.ai/_astro/november-lee.Cro_USs7_Z1Yhdwg.webp)