Business Description
Accounts Payable (AP) refers to the outstanding financial obligations your business holds with suppliers, vendors, or creditors for products or services received but not yet paid for. It serves as a critical component of your financial record-keeping, representing a liability on your balance sheet until payments are made. Effectively managing AP is essential for optimizing cash flow, ensuring timely payments, and maintaining strong vendor relationships.The AP Process Flow
AP involves a series of steps that may vary according to your business’s specific processes. These key steps include:
Invoice Receipt: The initial stage involves receiving invoices from your suppliers.
Invoice Verification: Ensuring the accuracy and legitimacy of received invoices.
Approval Workflow: Routing invoices through the appropriate channels for approval.
