Definition

Listing the money customers owe for products or services delivered. Keeping track of these payments is key to maintaining cash flow.

What to consider

  • Keep track of due dates.
  • Negotiate favorable payment terms with suppliers.
  • Maintain an organized record of payables.

Real world scenarios

  • A retailer in Atlanta organizes supplier invoices to avoid late fees.
  • A small business sets up automated payments for regular bills.
  • An entrepreneur reviews accounts payable weekly to ensure accuracy.

Related terms

Entrepreneurial Finances