The Accounts Payable account captures all expenses incurred by a business, but not yet paid. It’s a current liability account, meaning that it captures expenses that are due within the coming year, and lives on the Balance Sheet.The expenses captured in the Accounts Payable account are typically owed to the organization’s vendors and service providers, and are typically due on specific dates, or within specific time periods. When the Accounts Payable account is correctly maintained the organization knows how much it will owe, and when it will be owed, and can therefore best manage its cash flow. Accounts Payable account transactions are double-sided transactions. In Accrual accounting, the expense is booked to the related expense account at the time the expense is incurred, or when the bill is received. Until the expense is paid, it remains in the Accounts Payable account.At the Profit Line, our job is to make sure our customers know what’s going on financially, how much they owe their vendors and service providers, and when it will need to be paid. If volume warrants, we introduce best in class 3rd party software to help manage Accounts Payable, reducing labor and increasing overall efficiency in managing this account.