What is Accounts payable?
Payables are the clearest early warning that a business is short of cash. A business can be profitable on paper and still fail because the money owed out is due before the money owed in arrives.
Money
The definition
Money your business owes to suppliers and has not yet paid.
An example
You owe a supplier $4,000 on 30 day terms and a client owes you $6,000 on 60 day terms. You are profitable by $2,000 and still 30 days short.
Related
Questions people ask
What is Accounts payable?
Money your business owes to suppliers and has not yet paid. Payables are the clearest early warning that a business is short of cash. A business can be profitable on paper and still fail because the money owed out is due before the money owed in arrives.