Accounts Payable

Accounts payable is the amount of money you owe to another company or supplier for any purchase you made or any service they provided to you. On your balance sheet, it appears as a liability, which means you owe it. More prominent companies usually have an AP department to manage this payment and their suppliers. AP is widely used as the short form of accounts payable. Most of the time, the department pays this balance at the end of the due date to create more cash flow in the company.With Zil Money, you can make the accounts payable process as easy as possible.

Accounts Payable is not an asset. AP is a current liability on the balance sheet. That resource is an asset if your company or an individual is on any resource. An asset can be anything like manufacturing equipment or even a patent. In brief, an asset can generate cash flow, reduce expenses or make sales. Whereas AP is a liability you owe to someone, it is recorded on the right side of your balance sheet.Accounts payable can be processed quickly at lowtransaction fees using Zil Money.

Accounts payable can be either your credit or debit. Regardless AP is a liability on your balance sheet. If an organization buys extra merchandise instead of paying with cash, the organization should credit AP so the credit will increment as needs be. When an organization pays its supplier the amount in the AP, it debits the AP so that its credit balance will decrease. With Zil Money, you can make the accounts payable process as easy as possible.

Accounts payable are the amount your organization owes to the supplier, whereas accounts receivable is the amount your customers owe to your organization. In short, AP is something others claim on you, and account receivable you something you claim on others. These look similar but mixing them up could cause a lack of balance in your accounting. Another way we can say AP is a liability on the balance sheet and accounts receivable is an asset on the left side of the balance sheet.Accounts payable can be processed quickly at low transaction fees using Zil Money.