Accounts Payable

Money your business owes to suppliers, vendors, and service providers for goods or services received but not yet paid for. A liability on your balance sheet.

Managing accounts payable is about timing: pay bills strategically (not early, not late) to optimise cash flow. Stretching payables while collecting receivables quickly improves working capital.

A founder owes £3,000 to her print supplier, due in 30 days. She negotiates an extra 15 days, giving her time to collect customer payments before the bill is due.