Ask the Accountant

A nice, easy question on this week’s Ask the Accountant.

Q. What is accounts payable?

A. It’s an accounting term that means a company’s obligation to pay off its short term debts to suppliers and/or creditors.

In very basic terms, it’s what your business owes out within a specified period.

You may hear the term ‘accounts payable’ also used to refer to a department within a business. This is the team that takes care of making payments owed by the business to its creditors and suppliers.