Accounts Receivable and Payable are essential components of the financial management process. Accounts Receivable (AR) is money owed to a business by its customers, while Accounts Payable (AP) is money that a business owes to its suppliers. Both represent a company’s debt obligations, which must be managed carefully to ensure the health of the business. The AR/AP cycle allows a business to maintain accurate records of what is owed and by whom, allowing them to track payments, develop strategies for collecting overdue debts, and plan their cash flow accordingly. As part of effective financial management, it is important to accurately record all transactions related to Accounts Receivable and Payable. By taking control of these assets and liabilities, businesses can ensure their long-term success.