When a company purchases goods on credit which needs to be paid back in a short period of time, it is known as Accounts Payable.
It is treated as a liability and comes under the heading, ‘Current Liabilities’. Accounts payable is a short-term debt payment which needs to be paid to avoid default.
Accounts Payable is a liability due to a particular creditor when it orders goods or services without paying in cash up front, which means that you bought goods on credit.
The Accounts Payable process involves reviewing an enormous amount of detail to ensure that only legitimate and accurate amounts are entered into the accounting system. Much of the information that needs to be reviewed will be found in the following documents: purchase order issued by the company, receiving reports issued by the company, invoices from the company’s vendors, contracts and various other agreements.
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“I always enjoy working with the team at Office Collective. They are creative in their approach, focused on delivering the best candidates and great to work with throughout the process. I highly recommend working with them again in the future.”