Accounts Payable/Receivable are components of an organization’s working capital that track financial transactions. Accounts Receivable (AR) is money owed to the business by customers for goods or services, while Accounts Payable (AP) is money the business owes to creditors and suppliers. In a nutshell, AR is what a business earns and AP is what it spends. This efficient tracking system allows businesses to keep their finances organized and ensure they maintain sufficient cash flow to keep operations running smoothly.