Accounts payable (AP) is the team that pays a company’s bills: suppliers, contractors, utilities, rent and more. AP’s job is to make sure every payment is valid (the goods or services were ordered and received), accurate (right amount, right vendor), approved, timely and recorded correctly.

Typical AP tasks

• Receiving, reviewing and entering vendor invoices.
• Matching invoices to purchase orders and receiving records.
• Routing invoices for approval and resolving exceptions.
• Setting up and maintaining vendor records.
• Preparing payment runs by check, ACH, wire or card.
• Answering vendor questions and reconciling vendor statements.
• Supporting month-end close and year-end 1099 reporting.

Why AP matters

AP touches cash, vendor relationships, financial statements and fraud risk. A strong AP team saves money by capturing discounts and avoiding duplicate or fraudulent payments, and keeps suppliers willing to work with the company.