The Accounts Payable Balance is a figure that summarizes the total amount of money owed by a business to its creditors. It represents any financial obligations that have been created as a result of goods or services having been purchased on credit. This balance is calculated at the end of each accounting period and must be settled before the start of the next period; failure to do so can have serious implications for a company’s financial health. To understand this balance, one must look beyond numbers and into the core functions and motivations of any business: paying suppliers promptly keeps relations strong and generates business goodwill.