Month End Glossary

Vendor

A vendor is an individual or entity that provides goods or services to another business or individual, often in exchange for payment.

In business terminology, a vendor is typically a company or individual that supplies specific products or services to clients, organizations, or individuals. Vendors play a crucial role in the supply chain and business ecosystem. For example, a software development company may rely on a hardware vendor to procure the necessary computing infrastructure for its operations. Vendors can range from wholesale distributors to individual contractors supplying niche services or products. In the context of accounting and financial management, monitoring vendor relations and ensuring timely payment are key steps to efficient operations. For instance, during a month-end process, reconciling accounts payable related to vendors ensures that all supplies and services provided have been accurately accounted for.

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