Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet paid. Reported as a current liability. Days Payable Outstanding (DPO) measures how long a company takes to pay suppliers: high DPO can be cash flow-positive but strains supplier relationships. Strategic A/P management captures early payment discounts (2/10 net 30 = 2% discount if paid within 10 days, otherwise full payment within 30). Three-way matching (purchase order, receipt, invoice) prevents fraud and errors. Automated A/P platforms (Bill.com, Tipalti, Ramp) reduce manual processing and improve cash flow visibility.
Article
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted…
Balance Sheet
The balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point…
Accounts Payable
August 22, 2026 · Aditya Gupta
Accounting
Related terms
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted…
Balance Sheet
The balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point…
