Accounts Payable and Cash Flow
Along with managing your accounts receivable by improving your credit and collection techniques, sound cash flow management demands that you keep a sharp eye on your payables and expenses.
Each time you make a purchase from a supplier without paying for it at the time of the purchase, you create an account payable (a payable) for your business. Accounts payable are amounts you owe to your suppliers that are payable sometime within the near future — "near" meaning 30 to 90 days. Without payables and trade credit you'd have to pay for all goods and services at the time you purchase them.
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