Accounts Payable Overview
An accounts payable department has many responsibilities to fulfill to ensure that payments to suppliers are made on time and the needs for flexibility in the organization are met:
- Managing Supplier Relationships
The accounts payable department is responsible for creating and maintaining a partnership with each supplier to ensure that all terms and conditions of the relationship are met.
- Processing Invoices
The accounts payable department receives invoices and records liabilities and corresponding expenses or assets. Often, the accounts payable department will have to match vouchers with invoices and purchase orders from other departments such as purchasing.
- Processing Payments
The accounts payable department ensures that payments are made in the most timely, accurate, and efficient manner possible. Before paying its suppliers, the accounts payable department needs to consider several factors, such as the due date of the invoice, whether a discount can be taken, and the amount of cash on hand versus the amount due to suppliers.