{"id":20823,"date":"2023-08-26T09:28:00","date_gmt":"2023-08-26T09:28:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=20823"},"modified":"2023-09-30T11:19:22","modified_gmt":"2023-09-30T11:19:22","slug":"accounts-payable-process","status":"publish","type":"post","link":"https:\/\/businessyield.com\/accounting\/accounts-payable-process\/","title":{"rendered":"ACCOUNTS PAYABLE PROCESS: How to Manage the Process Effectively","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
The accounting cycle includes the process of accounts payable<\/a>. In other words, to fully grasp the steps in the accounting cycle you need to first understand the accounts payable process. <\/p>\n\n\n\n As a small business owner, you’ll need to be aware of the accounts payable cycle and understand how the process works. Yea, some small businesses tend to overlook its importance but that does not make it any less relevant. It just means that they yet to see the bigger picture. <\/p>\n\n\n\n If you own a small business, you may be able to pay your expenses as soon as they arrive. On the other hand, if you have a lot of bills to pay, you’ll definitely need to put them to accounts payable and pay them later.<\/p>\n\n\n\n But then what exactly are accounts payables? <\/p>\n\n\n\n Well, our post on accounts payable<\/a> already covers all you should know. But while this post will cover the accounts payable process and how to manage it, I’ll just scratch the surface.<\/p>\n\n\n\n In simple terms, accounts payable are what you owe for products purchased on credit. Basically, the amount you owe for products and services goes to your accounts payable balance whenever you make a purchase.<\/p>\n\n\n\n And because all of these products and services were acquired on credit, with the balance due and payable within a set timeframe, a late fee or penalty is set, if the balance is not paid within the stipulated timeframe.<\/p>\n\n\n\n Furthermore, accounts payable is a liability account. In other words, any rise in this account is recorded as a credit, with a corresponding debit to an expense account in double-entry accounting.<\/p>\n\n\n\n When invoices are paid, the accounts payable account is debited and the cash account is credited.<\/p>\n\n\n\nWhat are Accounts Payable?<\/span><\/h2>\n\n\n\n
What’s the difference between accounts payable and accounts receivable?<\/span><\/h3>\n\n\n\n