What Does Accounts Payable Include?

Accounts payable meaning includes all short-term obligations a business owes to its suppliers or service providers for goods and services received but not yet paid for. This can involve purchases like raw materials, utilities, rent, and professional services. It is recorded on the balance sheet under current liabilities. Managing accounts payable efficiently is vital for tracking expenses, budgeting, and maintaining good business relationships. A structured accounts payable process also helps prevent errors, duplicate payments, and fraud in financial operations.