Accounts Payable

Accounts Payable is defined as the money which a company owes to vendors for products and services purchased on credit. This item appears on the company’s balance sheet as a current liability, since the expectation is that the liability will be fulfilled in less than a year. When accounts payable are paid off, it represents a negative cash flow for the company.

Accounts Receivable are a current asset or the expected value to be received from customers for items shipped and services performed but not yet paid for. It is often used to refer to the department that applies cash received from customers against open invoices and manages invoice adjustments and credit memos.

Critical to effective cash flow management is to know what payments you owe, to whom and when they are due. Not knowing these factors can obscure your view of your finances, exposing you to the risk of unexpected short falls of funds.

Fast and accurate data entry of your Accounts Payable, Accounts Receivable, Salary Information, and invoice information on a regular basis is critical. Good, strong Bookkeeping can help you achieve this. You can use Outsourcing and Bookkeeping – managed by our expert Accountants, to achieve your goal – better cash flow.

Contact B B Whitehouse Group today – too see what we can do for you!