Definition: A company's outstanding debts, or liabilities, to vendors for
purchases of goods and services made on credit
It's important to track accounts payable in a timely manner to
ensure that you know how much you owe each supplier and when
payment is due. Many a good supplier relationship has been damaged
due to a sloppy accounts payable system. Also, if your suppliers
offer discounts for payment within 10 days of invoice, a good
automated accounts payable system will alert you when to pay to
maximize the discounts earned.