Elements Of The Accounting System: Accounts Payable Whom do you owe? Keep track with the accounts payable ledger.

The accounts payable subledger is similar to that used to trackaccounts receivable. The difference is that accounts payable occurwhen you purchase inventory or other assets on credit from asupplier.

It is important to track accounts payable in a timely manner toensure that you know how much you owe each supplier and whenpayment is due. Many a good supplier relationship has been damageddue to a sloppy accounts payable system. Also, if your suppliersoffer discounts for payment within 10 days of invoice, a goodautomated accounts payable system will alert you when to pay tomaximize the discounts earned.

Excerpted from Start Your Own Business: The Only Start-UpBook You'll Ever Need, by Rieva Lesonsky and the Staff ofEntrepreneur Magazine, © 1998 Entrepreneur Press

Editor's Pick

Business News

'Please Fix This': Elon Musk Frantically Emails Employees During Livestream Glitch

Musk attempted to livestream his visit to the U.S.-Mexico border.

Business News

Costco Isn't Facing Devastating Surges in Theft Like Target and Walmart — and the Reason Is Very Simple

The retailer's CFO revealed its strategy during a fourth-quarter-earnings call.

Business News

These NYC Roommates Created a Fake Restaurant and Accidentally Garnered a 2,000-Person Waitlist — So They Opened a Pop-up for Real.

The Gen Z'ers dubbed their apartment "Mehran's Steak House" on Google Maps during the pandemic.


Want to Improve Your Brand's Storytelling? Shift Your POV to Tell a Better Narrative. Here's How.

In a crowded digital media environment of voluntary engagement, brand storytelling isn't enough to grab attention. You must approach the story from the right perspective — your customer's.