Accounts Receivable and Accounts Payable make up the core of any business’s financial operations. Accounts Receivable (AR) are amounts owed to a business by customers for goods or services provided, while Accounts Payable (AP) are amounts owed by a business to its suppliers and vendors. Understanding how AR/AP works is essential for any successful business. Think of it as your business’s money flow: what you owe vs. what you’re owed. Keeping track of them both will help ensure your finances stay healthy and secure.