Invoicing glossary
Accounts payable
Accounts payable (AP) is the money a business owes its suppliers for goods or services it has received but not yet paid for.
Accounts payable: a clear definition
Accounts payable is the mirror image of accounts receivable: it's a liability — invoices you've received and still need to pay. Managing it well means paying on time to keep good supplier relationships, without paying so early that you hurt your own cash flow.
How Invco helps
Invco is an AI invoicing assistant that handles accounts payable and the rest of your billing for you. Design a custom invoice template, then let Claude create and send invoices on it in plain English — with subtotals, tax, and totals calculated automatically and every invoice tracked from sent to paid. Start free with one company.
- Related terms: Accounts receivable, Net 30
Frequently asked questions
What is accounts payable?
Accounts payable (AP) is the money a business owes its suppliers for goods or services it has received but not yet paid for.
What is accounts receivable?
Accounts receivable (AR) is the money customers owe a business for goods or services already delivered but not yet paid for.
Invoice the easy way with Invco
Let an AI assistant create and send your invoices on a template that looks like your brand. Start free with one company — no credit card required.
Get started — it's free