What is accounts payable? Meaning and explanation

In accounts payable, every purchase invoice is recorded under the supplier's name, with invoice number, date, amount, VAT and due date. Payments are reconciled against the invoices they relate to, so the outstanding amount per supplier is visible. The total of all open purchase invoices appears on the balance sheet as trade payables. Accounts payable is a basic record that must be kept for 7 years.

For a firm, reliable accounts payable is the basis for clients' cash flow planning, for correct input VAT deduction and for preventing duplicate or fraudulent payments. Much of the work lies in entering invoices on time, checking bank details and approving invoices before they are paid. Open items that turn out to be paid already point to reconciliation work that has been left undone.

Autoboeker processes purchase invoices without templates, recognises existing suppliers and can create new ones automatically. Payment terms are read, IBANs are checked and duplicate invoices are flagged. With approval workflows you record per administration who approves invoices, before or after booking. Payments are matched and reconciled in Exact Online, Twinfield and SnelStart.