Accounts Payable (AP) is an accounting term referencing the total amount of money a company owes to suppliers and creditors. It’s often referred to as a liability account, since it is an obligation that will eventually have to be paid off. Keeping accurate records of AP is critical to the success of any business; it ensures that they are paying their bills on time, and allows them to identify areas where they can reduce expenses. Furthermore, having an organized system in place for tracking and managing Accounts Payable helps a business create positive relationships with vendors, ensuring loyalty and better rates.