| 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. |
