Accounts Payable (AP) represents amounts owed by a company to its suppliers for goods or services purchased on credit. This is typically recorded as a current liability on the company's balance sheet. For example, if a company receives materials from a vendor amounting to $5,000 with a payment term of 30 days, this amount will go into the Accounts Payable account until payment is made. Managing Accounts Payable effectively ensures good relationships with suppliers by meeting payment deadlines and maintaining the company’s creditworthiness. Tracking Accounts Payable accurately during month-end processes is essential to verify the company’s obligations and reconcile balances. Using software like Easy Month End can streamline capturing and verifying Accounts Payable in accounting workflows.