Accounts Payable (A/P) represents the amount of money a business owes to its vendors, suppliers and other creditors. It is considered a liability on the company’s financial statements and reflects the economic and operational obligations that have been incurred in the normal course of business. A/P is usually reported as a current liability, meaning that it should be paid off within one year. In some cases, A/P can include both short-term and long-term liabilities, depending on the terms of payment with each vendor or supplier. An efficient and organized accounts payable process makes it easier to manage payments while maintaining productive relationships with vendors and creditors.